GBP/USD Current price: 1.3238
- PM May planning a higher Brexit divorce-bill offer to move talks into the second phase.
- EU's chief Brexit negotiator Michel Barnier, not willing to discuss post-Brexit trade yet.
The GBP/USD jumped to a 3-week high of 1.3279 this Monday, unaltered by German headlines, and with the Pound getting a boost early London, by news suggesting that the UK government was planning to double its Florence Brexit divorce bill offer to the EU of £20B, hoping to accelerate post-Brexit trade talks. However, EU authorities are unwilling to move to a second phase, and the payment seems to be a minor concern, as EU's chief Brexit negotiator, Michel Barnier, hinted that the EU is ready to block any trade deal with the UK if the kingdom does not conform to the values of the Union. Is not the monetary offering what open future trade talks, but the UK surrendering to EU's conditions. On the macroeconomic front, the UK will release its Inflation Hearings report and the CBI industrial trends survey this Tuesday. The pair holds on to gains, despite easing from the mentioned high, now trading in the 13230 region. The 4 hours chart shows that the price remains well above a bullish 20 SMA, which crossed above a still flat 200 EMA, while technical indicators have gyrated lower, holding anyway within positive territory. Below 1.3195, the risk will lean towards the downside, with scope then to extend its decline toward 1.3130.
Support levels: 1.3195 1.3160 1.3130
Resistance levels: 1.3225 1.3260 1.3300
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
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold reaches to all-time highs near $2,230, US PCE eyed
Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.