GBP/USD analysis: Brexit-headlines glut continues, Pound hurt

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2735

No second Brexit referendum likely despite Corbyn's desire.
BOE's Governor Carney set to speak this Wednesday after the release of the Financial Stability Report.

The GBP/USD pair traded as low as 1.2724, not far from November bottom at 1.2723, as Brexit disappointment keeps weighing on the Pound. Jeremy Corbyn, the leader of the Labour Party, tried to get support from the Parliament for a second Brexit referendum but didn't get enough support. Also, speculation that the deal won't pass the MPs approval and comments from UK lawmaker Fallow earlier today, indicating that it's possible to delay the date estipulate to leave the EU in order to negotiate a better deal, undermined the Sterling. As the clock keeps ticking toward the departure date, the only thing clear is that the future relationship between both economies remains in the goodwill field. This Wednesday, the BOE will release its Financial Stability Report and banks´ stress tests result at 1630 GMT on Wednesday, followed by a press conference by Governor Carney.

The pair remained under pressure after breaking below the 1.2800 figure, spending the last session near the mentioned low as selling interest rejecting attempts to recover ground around 1.2780. The mentioned November low stands now as a key psychological support, with a break below it exposing the yearly low at 1.2661. In the middle is October low at 1.2690. The short-term technical picture is bearish as in the 4 hours chart, the pair extended its decline below a mild-bearish 20 SMA, also developing some 300 pips below a bearish 200 EMA, as technical indicators resumed their declines within negative ground, maintaining negative slopes ahead of the Asian opening.

Support levels: 1.2720 1.2690 1.2660

Resistance levels: 1.2670 1.2815 1.2850

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.

EUR/USD off highs, back to around 1.1900

EUR/USD keeps its strong bid bias in place despite recedeing to the 1.1900 zone following earlier peaks north of 1.1900 the figure on Monday. The US Dollar remains under pressure, as traders stay on the sidelines ahead of Wednesday’s key January jobs report, leaving the pair room to extend its upward trend for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.