GBP/USD clipping higher on rising Brexit expectations

The Cable is stretching into recent highs as Brexit hopes return to the forefront.
It's a hectic day for speeches in the UK ahead of the US CPI reading.

Joshua Gibson FXStreet

The GBP/USD is getting buoyed by a step-down by the US Dollar, and the Cable is testing into 1.3225.

Positive-leaning Brexit headlines are helping to provide support for the GBP heading into Thursday, with UK Prime Minister Theresa May gearing up to try and swing a temporary trade agreement with the European Union following Brexit, at least until a firmer plan can be realized.

Eurosceptics within PM May's own government are already baying for blood, and calls are beginning to arise for the dissolution of May's government, but bullish hopefuls are focusing on the positives for the time being.

It's going to be a tense day on the economic calendar for the Cable, with an early speech from the Bank of England's (BoE) Carney at 05:00 GMT, to be followed by the BoE's Credit Conditions survey at 08:30 GMT, another appearance from Mark Carney at 09:00 GMT, and finally a speech from MPC Voting Member Vlieghe at 10:45 GMT; after that will be the US' CPI reading at 12:30 GMT, and core inflation in September is expected to tick up from 2.2% to 2.3%.

GBP/USD levels to watch

The Sterling could be in a cushy position to claim further upside, according to FXStreet's own Valeria Bednarik: "the GBP/USD pair seems comfortable above the 50% retracement of the 2016/18 rally, now turned into support at around 1.3175. The pair has been unable to sustain gains for long above the level in the last two months, so caution is recommended, although further positive Brexit-related headlines should keep it on the bullish side. The short-term technical picture favors additional gains, moreover, if the pair breaks above 1.3215, Sep 26 high, as, in the 4 hours chart, technical indicators maintain their upward slopes near overbought readings, while the price advanced well above a firmly bullish 20 SMA."

Support levels: 1.3175 1.3130 1.2990

Resistance levels: 1.3215 1.3245 1.3290

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD holds steady above 1.1850 in quiet session

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day holiday.

GBP/USD flat lines near 1.3650 ahead of UK and US data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.3650 on Monday. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important data releases from the UK and the US.

Gold corrects lower, tries to stabilize above $5,000

Gold started the week under bearish pressure and declined to the $4,960 area before staging a modest rebound. As trading volumes remain thin with the US financial markets remaining closed on Presidents' Day holiday, XAU/USD looks to stabilize above $5,000 ahead of this week's key data releases.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.