GBP/USD: cable moves fuelled by the politics of Brexit [Video]

Richard Perry Independent Analyst

GBP/USD

Another session of significant volatility on sterling left Cable on a wild ride of a 220 pip rebound from the day low to close with a further 45 pips up of the day. Closing through $1.2780/$1.2800 resistance area now opens moves towards the $1.30s. There is an old basis of support around $1.3000 from March with the next key reaction high at $1.3175 meaning a band of resistance $1.3000/$1.3175. However the move is fuelled by the politics of Brexit right now. This could easily come crashing down this morning if the EU Council do not get to discuss a new Brexit deal proposal. Weakness has been bought into repeatedly in recent sessions, with the hourly chart showing the rising 55 hour moving average (this morning at $1.2745) repeatedly capturing intraday corrections for the past three sessions. Resistance initially at $1.2875 from yesterday’s high, but as we have been discussing throughout this week, if the politics change again, then technical levels will not matter one jot. Yesterday’s low at $1.2645 is the latest higher low.

Author

Richard Perry

Independent Analyst

EUR/USD looks to stabilize near 1.1600 as focus shifts to US data

EUR/USD is looking to stabilize near 1.1600 in the European session on Wednesday as traders breathe a sigh of relief before the top-tier US ADP jobs and ISM Services PMI data. A pause in the US Dollar uptrend helps the pair's recovery, but surging energy prices due to the Iran war will likely remain a drag.

GBP/USD stays weak near 1.3350 as USD preserves gains

GBP/USD stays in the red below 1.3350 in the European session on Wednesday. Escalating conflict in the Middle East keeps the "flight to safety" theme intact, supporting the US Dollar against the Pound Sterling. Traders will take more cues from the US ADP Employment and ISM Services Purchasing Managers Index reports, which are due later on Wednesday.

Gold retains positive bias amid sustained safe-haven flows and modest USD pullback

Gold maintains its offered tone through the first half of the European session, though it lacks follow-through and remains below the $5,200 mark. Investors remain concerned about a prolonged conflict in the Middle East and its impact on the global economy amid an already uncertain environment.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.