GBP/USD bounces-back to 1.2740 post-May’s comments

Bears keeping control amid UK PM May’s Brexit comments, risk-off.
Brexit uncertainty to continue to play a spoilsport ahead of ECJ ruling and Parliament vote next week.
Greenback rebounds heading towards the US ISM services PMI, Powel speech.

Dhwani Mehta FXStreet

The GBP/USD pair witnessed good two-way trades last hour, now bouncing-back towards the 1.2725/30 region following a test of the 1.2700 support.

The volatile trading seen in the spot can be mainly attributed to latest developments surrounding the Brexit vote, with the UK PM Theresa May sounding very firm on her Brexit deal, citing that “it’s my deal, no deal, or no Brexit at all”.

Her comments knocked-off the Cable to the 1.2700 level before reversing quickly on the headlines that the European Court of Justice (ECJ) will release its ruling on Article 50 of the Treaty of European Union on December 10 at 8:00 GMT. Note that the ECJ aide said earlier this week that the UK could unilaterally revoke Article 50 if it chooses so.

However, GBP/USD is likely to remain exposed to downside risks amid looming Brexit uncertainty ahead of the Dec. 11^th meaning vote and as the US dollar remains broadly bid amid a risk-off market environment, fuelled by the latest US-China feud. China is enraged after the US asked Canada to arrest the Chinese company, Huawei, CFO and called for extradition.

Looking ahead, fresh Brexit headlines will continue to influence the pair until the release of the Fedspeaks and the US macro news, including the ISM non-manufacturing PMI release.

GBP/USD Technical Levels

GBP/USD

Overview:
    Today Last Price: 1.2723
    Today Daily change: -8.0 pips
    Today Daily change %: -0.0628%
    Today Daily Open: 1.2731
Trends:
    Previous Daily SMA20: 1.2831
    Previous Daily SMA50: 1.2944
    Previous Daily SMA100: 1.2964
    Previous Daily SMA200: 1.3298
Levels:
    Previous Daily High: 1.2798
    Previous Daily Low: 1.2672
    Previous Weekly High: 1.2864
    Previous Weekly Low: 1.2725
    Previous Monthly High: 1.3176
    Previous Monthly Low: 1.2723
    Previous Daily Fibonacci 38.2%: 1.275
    Previous Daily Fibonacci 61.8%: 1.272
    Previous Daily Pivot Point S1: 1.2669
    Previous Daily Pivot Point S2: 1.2608
    Previous Daily Pivot Point S3: 1.2543
    Previous Daily Pivot Point R1: 1.2796
    Previous Daily Pivot Point R2: 1.286
    Previous Daily Pivot Point R3: 1.2922

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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