GBP/USD: far more settled as the UK political risk for a no-deal Brexit has reduced [Video]

Richard Perry Independent Analyst

GBP/USD

Cable has slide back in the past week in a move to test the $1.2785 medium term pivot level. We have recently been discussing that there is a far more settled outlook that has taken over in recent weeks, as the UK political risk for a no deal Brexit has reduced. We see that the election uncertainty will induce a negative drift on Cable in the coming weeks and the last few sessions have played into this. The market has left a lower high at $1.2975 (under the $1.3010 key October high) before forming a run of negative closes to test $1.2785. There is a far more stable nature to the slide on Cable (compared to EUR/USD) and this is allowing a simple unwind on momentum rather than anything more decisively bearish. The RSI has slipped back towards 50 whilst MACD lines are drifting lower. There has been an opening rebound today and it will be interesting to see how the market responds. The market has sold into intraday rebounds on each of the past five sessions and another today for a close back under $1,2785 would open for a deeper correction back towards the next band of breakout support $1.2580. The hourly chart shows initial resistance $1.2835 needs to be breached to re-engage the bulls within what is still essentially a three week trading range. Further resistance at $1.2875.

Author

Richard Perry

Independent Analyst

EUR/USD remains weak near 1.1800

EUR/USD remains on the back foot on Thursday, trading close to the 1.1800 support ahead of the opening bell in Asia. The pair’s pullback comes amid further gains in the Greenback, while investors keep assessing the ECB’s decision to leave its policy rates unchanged

GBP/USD drops to two-week low, around 1.3500

The GBP/USD pair adds to the previous day's dovish Bank of England-inspired heavy losses and drifts lower for the third straight day on Friday. The downward trajectory is sponsored by sustained US Dollar buying and drags spot prices to a two-week low during the Asian session, with bears now awaiting a break below the 1.3500 psychological mark before placing fresh bets.

Gold reverses a dip to $4,650 as bargain hunters emerge

Gold price is reversing a sharp sell-off to near $4,650 in the Asian session on Friday, re-attempting the $4,800 level. The precious metal finds fresh dip-buying demand amid broad risk aversion. Gold fell in early trades, extending the previous decline as traders cover losses from equities and adjust positions. The preliminary reading of the Michigan Consumer Sentiment Index report will be eyed later on Friday.

Bitcoin and top cryptos plummet further as analyst terms market crash 'structural'

Bitcoin has declined below $65,000 on Thursday, down 11% over the past 24 hours. The move marks its largest decline since the October 10 leverage flush. Since then, the top crypto has erased more than 50% of its value since the October 10 leverage flush.

The AI mirror just turned on tech and nobody likes the reflection

Tech just got hit with a different kind of selloff. Not the usual rates tantrum, not a recession whisper, not even an earnings miss in the classic sense. This was the market staring into an AI mirror and recoiling at its reflection.