GBP/USD analysis: PM May warns of risk of "no Brexit at all"

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3234

UK PM May warned that, either MPs back her up, or if not, "we risk ending up with no Brexit at all."
House of Commons to review government's trade bill this Monday.

The GBP/USD pair recovered from its weekly low of 1.3102 to settle at 1.3234, helped by broad dollar's weakness in the last trading day of the week, this last fueled by profit-taking. The Pound suffered from Brexit jitters these last few days, as the White Paper presented by the UK government was much softer than what Brexiteers wanted, triggering a batch of resignations that put May's leadership under scrutiny, again. Helping the Sterling recovery ground were comments from US President Trump, who said that a trade deal with the UK post-Brexit is still possible, after commenting against it earlier in the week. On Sunday, PM May warned that, either MPs back her up, or if not, "we risk ending up with no Brexit at all," according to her own words, as there is no other "workable alternative" for a future trade relationship. This Monday, the House of Commons will review the government's trade bill, and May hopes there won't be amendments to it. A clean vote that supports her strategy will likely help the Pound advance. Technically, however, the upward potential remains limited according to technical readings in the daily chart, as the pair hovers around a flat 20 SMA while technical indicators are stuck to their midlines, now aiming higher but with no actual strength. Shorter term, and according to the 4 hours chart, technical indicators lost upward strength around their midlines after correcting oversold conditions, while the price settled a few pips above a mild bearish 20 SMA, also indicating limited buying interest.

Support levels: 1.3180 1.3155 1.3110

Resistance levels: 1.3240 1.3285 1.3320

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 loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.