- USD profit-taking and hopes of a Brexit deal keep the Cable well bid.
- All eyes on the UK Brexit Cabinet meeting and UK inflation data for a fresh directional move.
The GBP/USD pair is seen flirting with the 1.30 handle, as we progress towards the European trading, having stalled the overnight bounce near 1.3035 region, as attention now turns towards the crucial UK Cabinet meeting on the Brexit deal and inflation figures.
Focus on Big Brexit Wednesday
The Cable jumped in the early trades as the US dollar ran into fresh offer versus its major rivals, with the USD index extending the retreat from 16-month tops to now trade near 97.10 levels. Broad-based US dollar weakness was mainly driven by a profit-taking spree, as the investors flocked to the GBP and the Euro on expectations that a Brexit deal will be clinched soon.
Further, the Sun newspaper reported that the UK Cabinet Ministers Raab, Hunt, Javid, Gove and Cox will support the Brexit draft likely to be presented for approval before the UK Cabinet when it meets later today at 1400 GMT.
Markets believe the UK PM Theresa May’s Cabinet may approve the draft withdrawal agreement, but it will be a challenge for May to take it through the parliament. This comes after both the UK and the European Union (EU) agreed on a preliminary Brexit text that would allow a deal that avoids a chaotic "hard Brexit" departure.
Besides, the key Brexit event, the UK October CPI figures are due on the cards and are seen a tad firmer at 2.5% y/y and 0.2% m/m. Also, of note remains the US inflation report due later in the NA session at 1330 GMT.
GBP/USD Technical Levels
GBP/USD
Overview:
Last Price: 1.3006
Daily change: 50 pips
Daily change: 0.386%
Daily Open: 1.2956
Trends:
Daily SMA20: 1.2951
Daily SMA50: 1.3034
Daily SMA100: 1.3027
Daily SMA200: 1.339
Levels:
Daily High: 1.3048
Daily Low: 1.2839
Weekly High: 1.3176
Weekly Low: 1.2958
Monthly High: 1.326
Monthly Low: 1.2696
Daily Fibonacci 38.2%: 1.2968
Daily Fibonacci 61.8%: 1.2919
Daily Pivot Point S1: 1.2847
Daily Pivot Point S2: 1.2738
Daily Pivot Point S3: 1.2637
Daily Pivot Point R1: 1.3057
Daily Pivot Point R2: 1.3157
Daily Pivot Point R3: 1.3266
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