GBP/USD: Bulls take a breather heading into a Big Brexit Wednesday

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.

Dhwani Mehta FXStreet

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

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.

EUR/USD recedes to daily lows near 1.1770

EUR/USD is losing some momentun, easing to daily troughs around 1.1770 on turnaround Tuesday. The pair’s pullback comes amid solid gains in the US Dollar, all amid lingering uncertainty around US tariffs ahead of comments from Fed officials.

GBP/USD comes under pressure below 1.3500, focus on BoE

GBP/USD is on the defensive again on Tuesday, hovering below the 1.3500 mark as the Greenback stages a firm rebound after two soft sessions. Investors, in the meantime, are expected to closely follow BoE official’s comments later in the day.

Gold fades the advance, back to $5,100

Gold is giving back a good portion of the recent multi-day rally, receding to the boundaries of the $5,100 region per troy ounce amid the marked rebound in the Greenback. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Crypto Today: Bitcoin, Ethereum, XRP come under renewed pressure amid ETF outflows, tariff uncertainty

Bitcoin, Ethereum and Ripple are trading under increasing selling pressure at the time of writing on Tuesday, as market participants navigate renewed tariff uncertainty. The Crypto King holds above $63,000, down 2% intraday from its $64,656 open.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.