GBP/USD analysis: Barnier rejects May's plan, Pound down

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3109

EU’s chief Brexit negotiator Barnier said that the UK customs plan is not a workable solution.
GBP/USD holding above 1.3100, but increasingly bearish according to intraday charts.

The GBP/USD pair peaked at 1.3212 at the beginning of the day, its highest for this week but gave up gains and trimmed all of its weekly gains, partially due to renewed dollar's strength post-ECB's decision, and partially due to renewed Brexit-related fears. EU’s chief Brexit negotiator, Michel Barnier, said that the UK customs plan is not a workable solution, tearing apart May's white paper. Among other things, Barnier said that the bloc won't allow a non-member state to collect tariffs on its behalf, adding that he doubts the Irish border backstop could be applied to the whole kingdom. While affirming that some progress has been made, he added that "we are not at the end of the road yet." Brexit negotiations will resume mid-August. The pair is close to the 1.3100 figure, holding a few pips above this last ahead of the Asian opening, and looking poised to extend its decline as in the 4 hours chart, the pair broke below a now flat 20 SMA, while technical indicators have turned sharply lower, now breaking through their midlines, in line with a continued decline for this Friday, particularly on a break below 1.3090.

Support levels: 1.3090 1.3045 1.3010

Resistance levels: 1.3145 1.3190 1.3230

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.