GBP/USD analysis: Brexit-related headlines keep leading the way

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3022

EU-UK next submit in two weeks, EU's Tusk urged UK to stop "wasting time."
Upward potential limited for GBP/USD, risking a test of 1.2880.

The GBP/USD pair regained the 1.3000 level, extending intraday gains up to 1.3040, with the Sterling getting a helping hand from headlines indicating that the latest UK proposal on the Irish border issue, makes finding a compromise possible. Tensions, however, remain as the European Council president, Donald Tusk, said that the UK needs to stop "wasting time" and find a solution on the matter. Speaking alongside with Irish PM Varadkar, Tusk said that the EU is united behind Ireland, in its determination to avoid borders in the island. So far, nor the EU, neither the UK seems willing to give in. There were no macroeconomic news in the UK, and this Friday it will only offer the Halifax House Prices for September.

Meanwhile, the pair settled a handful of pips above the 1.3000 level, up from a daily low of 1.2921. The 4 hours chart shows that the pair was unable to surpass a flat 200 EMA, but so far holds above an also directionless 20 SMA. The Momentum indicator in the mentioned chart maintains its upward slope within positive territory, but the RSI indicator is currently easing around its mid-line, rather limiting the upward potential than favoring a new leg lower. Renewed selling interest below 1.2960, however, should open doors for a steeper decline toward a major static support at around 1.2880.

Support levels: 1.2960 1.2920 1.2880

Resistance levels: 1.3040 1.3085 1.3120

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 keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Will US CPI inflation revive the uptrend?

Gold is hanging close to one-week lows near $4,310 early Friday, nursing heavy losses after the US Producer Price Index (PPI) data release and the recent upsurge in Oil prices. Gold is looking to recover a part of the previous heavy losses as traders resort to repositioning ahead of the all-important US Consumer Price Index (CPI) inflation report.

Bitcoin slips below $77,000 – Raydium, Falcon Finance hold gains

Bitcoin price trades below $77,000 on Friday, extending its capitulation from the previous week’s high at $82,300. Broader market consensus points to a higher likelihood that the US Federal Reserve could raise interest rates at the September meeting, as inflation concerns rise amid the war with Iran.

Dollar comeback case 'a decent one' – September Fed hike 'back in play'

The dollar was left nursing heavy losses against most of its major peers after last month’s Treasury buyback wobble. Notwithstanding this, we think that the case for a near-term bounce in the greenback is a decent one. Warsh's hawkish pivot at Jackson Hole, followed by what was a blowout US payrolls report for August, has put a September rate hike from the Fed back in play.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.