GBP/USD analysis: May could save her spot, but Brexit is nowhere near solved

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2624

UK May could continue as PM after multiple MPs voiced their support ahead of the key vote.
Brexit deal still not approved by Parliament nor the EU wants to review it.

The GBP/USD pair recovered from a fresh yearly low of 1.2476 to settle in the 1.2640 price zone by the end of the US session. The Sterling got hammered on the confirmation that UK PM Theresa May had to face a no-confidence vote from Tory MPs. Mrs. May said that she would contest the vote with everything she has, warning that changing the PM at this stage would mean delaying or even canceling Brexit. The recovery came as the result of multiple MPs voicing their support to May ahead of the vote, conducted through a secret ballot. Mrs. May could have saved her job, but she in no closer to fulfill Brexit promises, neither of passing the Brexit deal through the Parliament. Meanwhile, the EU is stubbornly firm on its stance against any additional negotiation. PM May announced she won't stand in the next election as party leader, a way of compensating the fellow party members that run against her.

The recovery may continue until market players realize Brexit is a checkmate for the UK. Technically, the pair is trading below its daily high of 1.2671, also below a strong static resistance at 1.2660, the former yearly low that rejected sellers a couple of times in the last few weeks. In the 4 hours chart, the price is currently holding above a still bearish 20 SMA, with the 200 EMA gaining downward traction at around 1.2810. Technical indicators recovered from oversold readings but remain within negative ground, losing upward strength. There's a long way ahead before calling the pair bullish, as the pair would need to firm up above 1.2840, something quite unlikely without a clear Brexit path.

Support levels: 1.2600 1.2555 1.2510

Resistance levels: 1.2665 1.2700 1.2745

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.