GBP/USD Current price: 1.3059
- UK's PM May and EU's Juncker to meet this Wednesday.
- UK Parliament could take control of Brexit if PM May can't pass a deal.
The Pound soared past 1.3000 against the dollar reaching 1.3066, its highest in over two weeks, as renewed Brexit hopes were combined with broad dollar's weakness in the last trading session of the day. During the London morning, junior business minister Richard Harrington said that the UK Parliament would take control of Brexit if PM May can't pass a deal next February 27. PM May´s spokesman said that the PM is still looking to reopen the withdrawal agreement, with no signs that EU officials are willing to do so. At the same time, the UK Environment Secretary Gove said that tariffs for a no-deal Brexit would be announced shortly. The UK released employment data earlier today, with the unemployment rate steady at 4.0% in the three months to December, and average hourly earnings increasing by 3.4% in the same period, both excluding and including bonuses compared with a year earlier. PM May and EU's Juncker will have a meeting this Wednesday in an attempt to break the stalemate over the Irish border.
The pair is now above the 61.8% retracement of the 1.3217/1.2772 slide at around 1.3050, up over 100 pips in the American session, resulting in technical indicators reaching extreme overbought readings in the 4 hours chart. Nevertheless, both the Momentum and the RSI maintain their strong bullish slopes, while the price is far above a now bullish 20 SMA and a directionless 200 EMA, all of which favors an upward extension ahead. The risk, however, is as always uncertainty surrounding Brexit as failed talks between May and Juncker could result in the pair giving back all of its recent gains.
Support levels: 1.3050 1.3010 1.2970
Resistance levels: 1.3090 1.3140 1.3185
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.