GBP/USD analysis: no-deal better than a bad deal, Pound to yearly lows

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2942

Chances of a no-deal are now up to 60% according to UK's international trade secretary Liam Fox.
GBP/USD bounced from a fresh yearly low, but remains below the previous one, at around 1.2960.

Chances of a no-deal Brexit sent the GBP/USD pair to 1.2919 its lowest for the year. UK's international trade secretary Liam Fox said that Britain is looking more likely than ever to crash out of the EU without a deal due to the "intransigence of the EU Commission." Furthermore, a May's spokesman said later that PM May still believes that no deal is better than a bad Brexit deal, although a good Brexit deal is in the interest of both parts. Brexit negotiations are set to resume next week. Early Asia, the UK will see the release of the BRC survey on retail sales for July, expected at 1.5% from the previous 1.1%. Later in the day, the Halifax House Price index will be out. The pair bounced from the mentioned low but remains at levels last seen in September 2017, and below the previous yearly low at around 1.2960, now the immediate resistance. In the short-term, the pair is extremely oversold, but there are no signs that a bottom has been reached, as in the 4 hours chart, the pair plunged well below a now bearish 20 SMA, while technical indicators remain in neutral territory, the Momentum aiming modestly higher, following price, but the RSI aiming to resume its decline currently at 22.

Support levels: 1.2920 1.2885 1.2840

Resistance levels: 1.2965 1.3000 1.3045

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 climbs above 1.1600 on US–Iran peace breakthrough

The EUR/USD pair stays firm above 1.1600 in the European session on Monday. The US and Iran have reached a deal to reopen the Strait of Hormuz on Sunday, which underpins risk sentiment, supporting the Euro against the US Dollar. Now, the main focus this week remains on the Fed policy decision due on Wednesday.

GBP/USD: US-Iran reaches deal supporting advance beyond 20-day EMA

The GBP/USD pair trades 0.35% higher to near 1.3460 during the late Asian trading session. The Cable extends its week-long advance as market sentiment improves further, following the announcement that the United States and Iran have reached a deal.

Gold gains momentum as US, Iran announce a peace deal

Gold price rises to a weekly high during the early European trading hours on Monday. The precious metal rebounds after the United States and Iran had reached a deal to end their conflict, easing concerns about inflation and higher interest rates.

Bitcoin consolidates gains, Ethereum defends support, XRP nears breakout trigger

Bitcoin, Ethereum and Ripple begin the week on a constructive note as the top three cryptocurrencies attempt to extend rebounds after recovering nearly 4%, 2% and 2.6%, respectively. BTC steadies around $65,600, ETH continues to hold firmly above the key $1,700 support, while XRP nears the upper boundary of the falling channel pattern.

President Trump announced that the deal with Iran is complete

President Trump announced that the deal with Iran is complete and he authorises the toll-free opening of the Strait of Hormuz and removal of the US Naval blockade. While the agreement is made, it is expected to be signed on Friday to take effect. The Forex market looks stable and could react slowly to the positivity around the news as Iran still expresses its mistrust on the US.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.