GBP/USD Current Price: 1.3294
- Brexit to be delayed whether May's deal passes or not.
- EU politics want a reason and a certain date for such a delay.
The GBP/USD pair closed the week with solid gains a handful of pips below the 1.3300 figure and not far below the fresh yearly high of 1.3381 set last Wednesday, after the UK Parliament rejected again PM May's Brexit deal, opening doors for an extension on Art. 50. The pair was extremely volatile as contradictory headlines flooded the news feeds, including chances of a second referendum, down-voted by lawmakers. Meanwhile, PM May insists that is either her deal or no deal. The UK Parliament will decide whether to pass or not May's deal this week once again, but the House of Commons has already voted for an extension, and the length of this last will be linked to May's deal approval. On the other hand, the EU has clearly stated that a valid reason and a determined date would be needed for such an extension to be approved. PM May's leadership has been compromised further with the latest developments, and while the kingdom could avoid the worst scenario on Brexit, or at least delayed, May's future as PM seems already doomed.
The GBP/USD pair heads into the weekly opening with a bullish stance, according to the daily chart, as the price holds firmly above a bullish 20 DMA which stands some 200 pips below the current level, while technical indicators have stabilized within positive territory after correcting overbought conditions. For the shorter term, and according to the 4 hours chart, the risk is also skewed to the upside, as the 20 SMA provided intraday support by the end of the week, while technical indicators also hold well above their midlines. The modest downward slopes of these last could be attributed to decreasing trading volumes at the end of the week, rather than to diminished buying interest. Bulls will try to retest the yearly high if the pair surges past 1.3310, the immediate resistance.
Support levels: 1.3255 1.3205 1.3160
Resistance levels: 1.3310 1.3350 1.3395
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
AUD/USD keeps the red below 0.6400 as Middle East war fears mount
AUD/USD is keeping heavy losses below 0.6400, as risk-aversion persists following the news that Israel retaliated with missile strikes on a site in Iran. Fears of the Israel-Iran strife translating into a wider regional conflict are weighing on the higher-yielding Aussie Dollar.
USD/JPY recovers above 154.00 despite Israel-Iran escalation
USD/JPY is recovering ground above 154.00 after falling hard on confirmation of reports of an Israeli missile strike on Iran, implying that an open conflict is underway and could only spread into a wider Middle East war. Safe-haven Japanese Yen jumped, helped by BoJ Governor Ueda's comments.
Gold price pares gains below $2,400, geopolitical risks lend support
Gold price is paring gains to trade back below $2,400 early Friday, Iran's downplaying of Israel's attack has paused the Gold price rally but the upside remains supported amid mounting fears over a potential wider Middle East regional conflict.
WTI surges to $85.00 amid Israel-Iran tensions
Western Texas Intermediate, the US crude oil benchmark, is trading around $85.00 on Friday. The black gold gains traction on the day amid the escalating tension between Israel and Iran after a US official confirmed that Israeli missiles had hit a site in Iran.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.