GBP/USD: Brexit trade negotiations make Cable a volatile play [Video]

Richard Perry Independent Analyst

GBP/USD

Brexit trade negotiations make sterling and in this case, Cable a volatile play right now. Sharp intraday swings in the past couple of days reflect this. A recent two week uptrend was broken yesterday, but the market then swung back higher and is again around the 1.3000 old pivot and restricted under 1.3080 resistance. Newsflow over the trade talks are a key driver here in the coming days, with support around 1.2860 (yesterday’s low) and resistance at 1.3080 near term key reference points for potential breaks. Positive news of an agreement will pull Cable above 1.3080 and open the upside once more. The two sides dragging their feet will see Cable drifting back lower again, with below 1.2860 opening 1.2670.

Author

Richard Perry

Independent Analyst

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.