GBP/USD: Cable should remain supported by hopes on Brexit and US-China trade talks [Video]

Richard Perry Independent Analyst

GBP/USD

With both Leo Varadkar and Boris Johnson talking up the prospects of a Brexit deal, sterling jumped sharply yesterday. Closing 235 pips higher on the day formed the strongest bull candle since March on Cable. This has broken a three week downtrend and dragged improvement through momentum indicators. Trading sterling without keeping one eye on the newsflow is risky right now. The technical signals have swung positive, with a closing breakout above near term resistance at $1.2415 which is also a pivot. This opens the prospect (unless the deal prospects are scuppered) of a move to test the $1.2580 resistance of the September high now. Closing back under $1.2415 would be disappointing and could lead to a slip back into $1.2300 area again. However, for now, as long as prospects of a US/China trade deal remain positive and Brexit deal prospects remain constructive, Cable should remain supported.

Author

Richard Perry

Independent Analyst

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.