GBP/USD analysis: no Brexit progress becoming a major issue

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3311

10 months to go for Brexit, and no trade deal, neither an Irish border solution.
GBP/USD stuck at yearly lows in thin holiday trading.

The GBP/USD pair saw little action this Monday, having spent the day in a tight range right above the 2018 low set last Friday at 1.3293. As the date for the UK leaving the EU looms, with just 10 months to go, the lack of progress in negotiations about the future trade relationship has become a major concern. Brexit secretary Boris Johnson has told PM May that the UK must come "fully out" of the EU customs union, in benefit of potential new trade deals with South American countries, after his trip through the region, adding pressure on PM May. The Irish border issue also remains unsolved, with none of the parts involved wanting a hard-border, the only solution on the table for the time being. The UK macroeconomic calendar has nothing of interest to offer this Tuesday, leaving Pound in the hands of sentiment and Brexit headlines. In the meantime, the short-term picture for GBP/USD is bearish despite the holiday left it with no directional strength, given that in the 4 hours chart, a modesty bearish 20 SMA, currently at 1.3340 keeps capping the upside, while technical indicators have turned modestly higher, but remain well below their daily highs and within negative levels.

Support levels: 1.3280 1.3245 1.3210

Resistance levels: 1.3340 1.3385 1.3410

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.

GBP/USD revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold challenges its 200-day SMA near $4,530

Gold’s decline gathers fresh steam, hitting weekly lows while disputing its critical 200-day SMA near $4,530 per troy ounce. The yellow metal’s increasing weakness comes in response to the generalised upbeat tone in the US Dollar and the widespread rebound in US Treasury yields, as investors continue to reprice a Fed rate hike in September.

Crypto Today: Bitcoin, Ethereum, XRP rally loses steam despite steady ETF inflows

Bitcoin is back below $80,000 at the time of writing on Friday, after a second attempt at breaking resistance between $81,000 and $82,000. Meanwhile, Ethereum and Ripple mirror Bitcoin’s cooling trend, with ETH sliding to $2,500 and XRP falling toward $1.40 support.

Week ahead – RBNZ and BoC decide on rates ahead of all-important US NFP

Dollar rebounds ahead of ISM PMI and NFP data. RBNZ is expected to raise rates; focus to fall on forward guidance. BoC is set to remain on hold; will it raise rates in 2027?

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.