- GBP/USD has rallied beyond the North American highs on the recent headlines bounding around which is essentially repeating the possibility for extending Article 50.
- GBP/USD is currently trading at 1.2783, reaching a high of 1.2790 from a pip below 1.2770 prior to the Brexit headline.
GBP/USD outperformed so far this week, recovering from last week's flash crash low to find territory back towards the 1.28 handle, some 300 pips higher. However, whether the bulls can maintain momentum as we approach the meaningful vote in The Commons next week is the key question, and volatility is highly likely. Moreover, depending on the outcome, we are bound to be inundated with conflicting headlines and Brexit noise that will dominate the FX boards between now and March when the UK could end up crashing out of the EU without a deal.
British officials are 'putting out feelers' for an Article 50 extension at discreet talks with EU counterparts
In thin trade, the pound has travelled quite a distance following the latest headline was from the UK Telegraph reporting that British officials are 'putting out feelers' for an Article 50 extension at discreet talks with EU counterparts. Some of the article read as follows:
"British and European officials are discussing the possibility of extending Article 50 amid fears a Brexit deal will not be completed by March 29, the Telegraph can reveal.
Three separate EU sources confirmed that UK officials had been "putting out feelers" and "testing the waters" on an Article 50 extension, even as the Government said it had no intention of asking to extend the negotiating period.The discreet diplomatic contacts, described by one source as officials "just doing their homework" emerged as a minister broke ranks for the first time to raise the possibility of extending the talks."
GBP/USD levels
Valeria Bednarik, Chief Analyst at FXStreet explained the pair is holding on to a short-term positive tone according to the 4 hours chart, finding support in a flat 200 EMA, currently at 1.2720, while the 20 SMA turned barely up below it:
"The Momentum indicator in the mentioned chart barely eases from overbought readings while the RSI indicator keeps heading north, currently at around 65. A relevant resistance comes at 1.2814, the high set on the last trading day of 2018, with a spike higher expected on a break above it, but most likely, to be short-lived."
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.