GBP/USD analysis: political uncertainty undermines Pound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3215

The GBP/USD pair saw little action this Wednesday, confined to a tight range around the 1.3200 level for most of the day. Despite broad dollar's weakness, the Pound was unable to gather upward momentum, undermined by UK's political uncertainty, perceived as a major downward risk for Sterling. In the meantime, the fifth round of Brexit negotiations is under way, and as usual, the only thing that stands out if the absence of progress. An announcement of whether they achieved it or not, is expected by the end of the next week. This Thursday, the BOE will release its credit conditions survey, hardly a big market mover, while no other big news are scheduled in the UK for the rest of the week. According to the 4 hours chart, the risk is lean towards the downside, as the price is stuck around the 50% retracement of its last week's decline, having held for a second consecutive week above the 38.2% retracement of the same slide at 1.13170, and with the 20 SMA gaining upward strength below this last. Technical indicators have opposite directions, but within positive territory, with the RSI heading north around 58, also favoring a new leg higher, particularly on an extension above 1.3230, the immediate resistance.

Support levels: 1.3170 1.3130 1.3090

Resistance levels: 1.3230 1.3260 1.3300

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 gathers strength above 1.1900 ahead of US January NFP data

The EUR/USD pair gains traction to near 1.1915 during the early European session on Wednesday, bolstered by a weaker US Dollar. Markets might turn cautious later in the day ahead of the delayed US employment report for January, which will offer clues on the path of Federal Reserve policy.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 amid Fed-driven USD weakness; focus remains on US NFP

Gold climbs back above the $5,050 level during the Asian session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple show no sign of recovery

Bitcoin, Ethereum, and Ripple show signs of cautious stabilization on Wednesday after failing to close above their key resistance levels earlier this week. BTC trades below $69,000, while ETH and XRP also encountered rejection near major resistance levels. With no immediate bullish catalyst, the top three cryptocurrencies continue to show no clear signs of a sustained recovery.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.