GBP/USD: Choppy inside immediate symmetrical triangle amid mild dossier of UK politics

  • One week-long symmetrical triangle portrays the GBP/USD moves despite increasing odds for no-deal Brexit.
  • UK PM likely witnessing no-confidence motion and/or forced to resign.
  • The Irish border isn’t the only issue to solve as far as the Brexit is concerned.

Increasing calls for the Brexit deal change and fresh doubts over the PM Johnson’s future fail to propel the GBP/USD pair as it remains modestly unchanged near 1.2158 heading into Wednesday’s London open.

Even if the Irish Prime Minister (PM) requests the EU and the UK to discuss and solve the backstop issue, it doesn't seem the only barrier that can help overcome the departure problems as the UK Express reports British lawmakers demanding a complete revamp of the deal to justify the Brexit.

It should also be noted that the EU recently turned down renegotiation request whereas the Telegraph reports a plot against the UK PM Boris Johnson if he defies no-confidence motion.

On the other hand, the US-China trade tussle continues highlighting risk-off while recently dovish statements from the global central banks, like Reserve Bank of New Zealand (RBNZ) and Bank of Japan (BOJ), also stop market players from trading.

Absence of major data/event on the economic calendar and mild dossier of the UK politics amid a parliamentary recess are likely reasons behind the lack of momentum.

Moving forward, the UK’s July month Halifax House Price Index becomes the only data to watch. While MoM reading is expected to reverse previous -0.3% contraction with +0.3% mark, 3m/YoY figure could soften to 4.4% from 5.7%.

Technical Analysis

Traders will be on the lookout of breaking near-term symmetrical triangle, currently between 1.2205 and 1.2122/20, to aim for further moves to either 1.2250 or 1.2080 depending upon the breakout direction.

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD: Bulls in control above 1.1100 starting out ECB week

Following the bounce from near 1.1100 in early Asia, EUR/USD has entered a phase of consolidated near 1.1140 region ahead of the European open. Bulls await a fresh impetus for the next push above the 1.1150 mark ahead of Eurozone/ US PMIs.


GBP/USD recedes from three-week top above 1.2400, UK Manufacturing PMI eyed

GBP/USD prints three-day winning streak amid broad US dollar weakness. Calls of further help to British employees add to the upside momentum. Downbeat Brexit headlines confront the UK’s coronavirus optimism. The UK/US PMIs will join qualitative catalysts.


FX Today: USD hit by escalating US riots, risk-on mood; US ISM PMI eyed amid light trading

The US dollar took a beating across the board starting out a new month/ week, as markets breathed a sigh of relief on the US’ softer stance on China. The dollar weakness was also backed by the escalating riots in the US cities, with curfews imposed on major cities. 

Read more

Gold: Teasing a rectangle breakout, $1750 in sight

Gold bulls gathering pace for the next push higher. The extension of last week’s rally in the yellow metal is mainly driven by the sell-off in the US dollar across the board, in the wake of US-China trade war relief and escalating US riots.

Gold News

WTI: Overbought RSI challenges the bulls above $35.50

WTI seesaws around 7-week-old resistance line, retreats from highest since March 11. A short-term ascending trend line on the bears’ radars during the pullback. 100-day SMA, 61.8% Fibonacci retracement together offers strong upside barrier.

Oil News