GBP/USD back over 1.35 as Britain veers to avoid hard Brexit landing

Sterling pops on Brexit news.
Avoidance of a hard Brexit scenario could open some much-needed room above the GBP.

Joshua Gibson FXStreet

The GBP/USD popped into recent highs early in the overnight session and is trading just above the 1.3500 handle once again.

The Sterling caught a quick boost after an announcement from the UK that the British Parliament would be willing to stay within the EU customs union beyond 2021 in an effort to head-off a 'hard-Brexit' scenario. The headlines quickly took the GBP/USD up about 30 pips on reaction, and the Sterling is continuing to drift upwards.

The rest of the Thursday market window brings little of note for the GBP/USD with little on the economic calendar, and GBP traders will be left to digest the safety net of avoiding a hard Brexit as general market sentiment appears poised to continue aa mild recovery.

GBP/USD levels to watch

The Sterling's technical outlook is still decidedly bearish, as described by FXStreet's Valeria Bednarik: "the pair gained downward potential despite holding above its weekly low of 1.3450, as intraday recoveries stalled short of 1.3600, the previous selling level. In the 4 hours chart, the pair is developing below its 20 SMA that slowly turns south, while the Momentum indicator extended its decline to fresh 1-week low. The RSI indicator in the mentioned chart hovers around 43, following price's action higher, but within familiar levels, far from indicating an upcoming upward move. Below 1.3450, the next relevant support comes at around 1.3410, where the pair has multiple relevant daily highs from last December."

Support levels: 1.3450 1.3410 1.3365

Resistance levels: 1.3520 1.3570 1.3610

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD holds above 1.1750 after mixed EU PMI data

EUR/USD manages to hold above 1.1750 but struggles to gather recovery momentum on Friday, following the mixed February PMI figures from Germany and the Eurozone. In the second half of the day, Q4 GDP, December inflation and February PMI data from the US will be watched closely by market participants.

GBP/USD recovers further toward 1.3500 after UK PMI data

GBP/USD is recovering ground further toward 1.3500 in European trading on Friday, helped by a modest uptick in the Pound Sterling after stronger-than-expected UK January Retail Sales and February PMI data. However, the pair's further upside could be limited amid persistent US Dollar strength as the focus turns to key US data.

Gold sticks to positive bias above $5,000 ahead of US data

Gold gains some positive traction for the third consecutive day on Friday. holding above $5,000. Traders now look forward to the key US macro releases – the Advance Q4 GDP report and the Personal Consumption Expenditures (PCE) Price Index – for fresh trading impetus.

US GDP growth expected to slow down significantly in Q4 after stellar Q3

The United States Bureau of Economic Analysis will publish the first preliminary estimate of the fourth-quarter Gross Domestic Product at 13:30 GMT. Analysts forecast the US economy to have expanded at a 3% annualized rate, slowing down from the 4.4% growth posted in the previous quarter.

Iran tensions and AI fears at the forefront ahead of key US data

Thursday’s scorecard shows major US Stock benchmarks closed modestly in the red amid mounting US-Iran tensions and AI disruption worries. The S&P 500 shed 19 points (0.3%) to 6,861, the Nasdaq 100 lost 101 points (0.4%) to 24,797, and the Dow Jones Industrial Average dropped 267 points (0.5%) to 49,395.

Official Trump price approaches breakout with mixed signals from traders

Official Trump (TRUMP) is trading at $3.50 at the time of writing, approaching its upper consolidation range. A breakout from this range could open the door for an upside move. On-chain data shows market indecision, with balanced flows between bulls and bears, signaling a lack of clear directional bias.