GBP/USD analysis: May softer-Brexit´s stance triggers batch of resignations

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3257

UK David Davis and Boris Johnson resigned on May's softer Brexit approach.
PM May avoids a no-confidence vote, Pound bounces from daily lows.

The Pound was in the eye of the hurricane this Monday, soaring to 1.3362 against the dollar on weekend news over a Cabinet agreement on a softer Brexit, but plummeting after UK Brexit Minister, Boris Johnson resigned. The GBP/USD pair plunged to 1.3189, to find some stability later around 1.3200, as the UK Cabinet falls apart, as Johnson's resignation came after David Davis´s one, amid both opposing to the softer-Brexit plan proposed by PM May last Friday. Dominic Raab replaced David Davis as Brexit secretary. Meanwhile, PM May said that EU offers for future relationships are unacceptable, and that poses a serious risk of disorderly no-deal Brexit. Rumors made the rounds, about a possible no-confidence vote against PM May, who already survived a couple of similar crisis, although UK Conservative Party Chairman Brandon Lewis said that he did not expect a confidence vote against Prime Minister May, helping the pair recover more ground. Technically, the 4 hours chart shows that the pair is currently battling around a still bullish 20 SMA, while technical indicators have stalled their declines around their mid-lines, suggesting that the market likes the softer-Brexit option, as long as May's head doesn't roll, and that they are not yet willing to unwind Pound longs.

Support levels: 13120 1.3190 1.3155

Resistance levels: 1.3285 1.3320 1.3365

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 falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.