|

GBP/USD analysis: Pound dumped on Brexit jitters

GBP/USD Current price: 1.3204

  • UK White Paper on Brexit's strategy to be out this Thursday.
  • GBP/USD expected to extend its decline on a break below 1.3189, the weekly low.

The GBP/USD pair approached the 1.3200 in the US afternoon, hit by dollar's broad strength and turmoil in the UK's Government. The kingdom should publish this Thursday the White Paper that draws Brexit´s strategy, which cost the resignation of multiple politicians including high-profile David Davis and Boris Johnson. The document, which points to a softer Brexit and is yet to be approved by the EU, is said to have suffered multiple revisions ever since the Chequers summit at the weekend, and farther away from what Conservatives wish it was. Market players will now focus not only on EU's response to the document but also on May's leadership and a possible no-confidence vote, after already skipping one shortly ago. In the data front, there were no relevant news coming from the UK, and this Thursday, just a minor report will come out, the BOE's Credit Conditions Survey. Meanwhile, the technical picture favors another leg lower for the pair, as in the 4 hours chart, it has remained capped by the 20 SMA, while technical indicators gain accelerate south within negative levels. The weekly low at 1.3189 is the immediate support, with a break below it opening doors for an extension down to 1.3110.

Support levels: 1.3190 1.3155 1.3110

Resistance levels: 1.3245 1.3285 1.3320  

View Live Chart for the GBP/USD

Author

Valeria Bednarik

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.

More from Valeria Bednarik
Share:

Editor's Picks

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.