GBP/USD awaits Brexit developments on key data week ahead


  • The EU27 delivered a 31 January Brexit deadline extension.
  • GBP/USD rests-up between the 50 and 200-hour moving averages in early Asia, traders looking to busy week ahead. 

GBP/USD price action is accumulated between the 50 and 200-hour moving averages in early Asia. GBP/USD is currently trading at 1.2857  having climbed from the depths of the 1.28 handle while traders monitored the latest Brexit developments.

Overnight, the EU27 delivered a 31 January Brexit deadline extension with the potential for an earlier date at 30th November and 31st December in a “Flextension”. Subsequently, the Pound was supported and GBP/USD rose 40 pips to 1.2860.

"The UK government’s bill to call an election on 12 December failed to reach the needed 2/3 majority but an early election may well occur anyway as a Liberal Democrat bill is planned to call an election with a simple majority," analysts at Westpac explained. Meanwhile, UK Parliament will resume with a vote expected on a bill to allow for an early election with a simple majority.

A jam-packed end to the month

Looking ahead for the week, besides Brexit risks, the calendar is jam-packed with event risks, namely with the Federal Reserve's interest rate decision and Nonfarm Payrolls at the end of the month. The Fed is expected to cut interest rates and markets are pricing 21 basis points of easing at the 30 October meeting and a terminal rate of 1.27% (vs 1.88% currently), according to analysts at Westpac.

Meanwhile, markets have been buoyed by the sentiment that a trade deal between the US and China is coming along. Overnight, President Trump said the US is ahead of schedule to sign the first phase of a US-China trade deal, reiterating it could be signed in November in Chile and Chinese officials said that parts of the text are “basically completed”.

GBP/USD levels

GBP/USD

Overview
Today last price 1.2857
Today Daily Change 0.0031
Today Daily Change % 0.24
Today daily open 1.2826
 
Trends
Daily SMA20 1.2594
Daily SMA50 1.2421
Daily SMA100 1.2431
Daily SMA200 1.2715
 
Levels
Previous Daily High 1.2864
Previous Daily Low 1.2802
Previous Weekly High 1.3013
Previous Weekly Low 1.2787
Previous Monthly High 1.2583
Previous Monthly Low 1.1958
Daily Fibonacci 38.2% 1.2826
Daily Fibonacci 61.8% 1.284
Daily Pivot Point S1 1.2798
Daily Pivot Point S2 1.2769
Daily Pivot Point S3 1.2736
Daily Pivot Point R1 1.2859
Daily Pivot Point R2 1.2892
Daily Pivot Point R3 1.2921

 

 

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