• GBP/USD looks to consolidate the breakout of the 1.2100 mark.
  • The Sterling stays bid on (vague) hopes of a soft Brexit.
  • UK politics now looks to a potential ‘no confidence’ vote.

After bottoming out in the proximity of the psychological 1.2000 handle early this week, the Sterling saw its demand kind of bolstered by renewed hopes of another outcome than a Brexit ‘no deal’ by end of October.

In fact, some UK policymakers are not only supporting the ‘no confidence’ vote on PM B.Johnson sponsored by Labour’s J.Corbyn, but they are also encouraging other MPs to back this motion and, firstly, avoid a hard UK-EU divorce and secondly, open the door to another deal and a potential second referendum (the latter being more of a wishful thinking).

In addition, UK latest inflation figures and the labour market report were not that bad and the rebound in Retail Sales during July surprised markets to the upside, all collaborating further with the upbeat mood in GBP.

Cable then faces the next important hurdle in the 1.2209/14 band, where sit August peak and the 21-day SMA. A more serious rebound should face the next up barrier at the short-term resistance line, today at 1.2380, seconded by the 55-day SMA at 1.2460 and ahead of 1.2578, high July 25. If, on the contrary, sellers regain the upper hand, a break below 1.2000 looks increasingly likely as well as a move to 2017 lows at 1.1985.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD falls off the highs amid trade wars, weak German figures

EUR/USD is falling toward 1.1100. The German IFO Business Climate dropped to 94.3 points, below expectations. Markets are concerned by the intensifying US-Sino trade wars.


GBP/USD consolidates amid Brexit uncertainty

GBP/USD is trading below 1.2300, consolidating its gains. The UK and the EU have been blaming each other for a potential no-deal Brexit. US-Sino tensions are in play as well.


USD/JPY recovers farther from multi-year lows on Trump’s positive trade-related comments

The incoming positive trade-related comments dented the JPY’s safe-haven demand. Improving global risk sentiment helped the pair to recover around 150-pips intraday. Investors now look forward to the US durable goods orders data for a fresh impetus.


Forex Today: Trade wars paint markets in red, Brexit looks worse, and central banks are limited

Here is what you need to know on Monday, August 26th: The US-Sino trade war is painting global markets in the red. The US dollar is losing some ground to major currencies as yields plunge, while it gains against commodity currencies. Gold is rising and oil is falling.

Read more

Gold retreats from multi-year tops, fills weekly bullish gap on positive trade headlines

Gold extended its intraday pullback from fresh multi-year tops and dropped to fresh session lows in the last hour, filling the weekly bullish gap. The US-China trade tensions escalated further.

Gold News