GBP/USD: Cable is running on pure newsflow [Video]

Richard Perry Independent Analyst

GBP/USD

It has been extremely difficult to consider a technical outlook for a market that is running on pure newsflow in recent days. Cable has been choppy, but intraday weakness has repeatedly been bought into as progress has been made this week. However, with a deal now achieved on an EU level, there may be little good news to prevent Cable slipping back today (the UK Parliament arithmetic does not look great for passing a deal on Saturday). For now the technicals (for what they are worth) remain positive. The hourly chart is intriguing too, with the market repeatedly supported by both a rising 55 hour moving average and a five day uptrend. The support of a higher low at $1.2750 will give an indication of where the market is at. Failure of this low would suggest the market is losing hope of securing a deal. The high of $1.2988 is resistance now, with a mini lower high at $1.2890. The volatile ride is not over yet and the biggest move (highly likely to be a significant gap) will be on Monday morning (Sunday night depending on where traders reside).

Author

Richard Perry

Independent Analyst

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.