GBP/USD analysis: mounting the Brexit rollercoaster

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3470

Irish border, the last milestone ahead of a Brexit deal.

UK to release Industrial and Manufacturing production and trade balance figures.

After falling for three consecutive days, the GBP/USD pair changed course during the last US session to end the day with solid gains well above the 1.3400 level and after printing a low at 1.3319. The early slump was the result of UK PM May words, as despite ensuring a Brexit deal is near, she reckoned that more work needs to be done to secure an agreement on the Irish Border issue. Later on the day, the Pound got boosted by headlines indicating that the EU and the UK reached an agreement on the role of the European Court of Justice post-Brexit, being then, the Irish border issue, the last milestone, which headlines indicating a deal is close on the issue being the latest bullish catalyst. The UK macroeconomic calendar will finally have something consistent to offer this Friday, in the form of Industrial and Manufacturing Production and Trade balance figures for October. The pair is currently trading around the 23.6%% retracement of the latest bullish run, after piercing late Thursday the 61.8% retracement of the same rally at 1.3345. In the 4 hours chart, the price is above a bullish 20 SMA, while technical indicators corrected from near oversold territory, regaining now upward strength.

Support levels: 1.3445 1.3390 1.3345

Resistance levels: 1.3485 1.3520 13550

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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.