GBP/USD analysis: Brexit rollercoaster continues

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2960

UK inflation remained steady in October, missing the market's expectations.
UK´s PM May could be subject of a no-confidence vote but seems Cabinet approved the deal

It was another rollercoaster day for the Sterling, as Brexit headlines kept coming. The GBP/USD pair fell to a daily low of 1.2885 on a mixture of fears that the DUP will reject the Brexit deal draft and softer-than-expected UK inflation. According to the official release, UK inflation remained steady in October, missing expectations. Core yearly CPI came in at 1.9% vs. the 2.0% forecast, amid slowing prices in food, clothing, and transport. The pair later surged to a daily high of 1.3035 as some market rumors indicated that the DUP will go with May's plan. A press conference for after the meeting was announced, later denied, later canceled, then re-scheduled, fueling fears of a negative outcome, particularly after some rumors indicating that at least 8 ministers are not willing to support May's plan, and other suggesting a no-confidence vote to be announced this Thursday.

The pair trades at around 1.2960, and the 4 hours chart show that is back above a bearish 20 SMA and now trying to surpass the 200 EMA, while technical indicators diverge from each other, the Momentum heading lower and the RSI modestly higher. Volatility around the GBP/USD is directly correlated to Brexit headlines, overshadowing technical readings, and therefore making it to risky to trade at the current levels. Either below 1.2826 or above 1.3046, the pair could seem some directional strength, depending on how the Brexit deal develops.

Support levels: 1.2860 1.2825 1.2770

Resistance levels: 1.2955 1.3000 1.3045

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 climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.