• UK political/Brexit uncertainties keep a lid on any meaningful up-move.
• A goodish pickup in the USD demand further collaborates towards capping.
The GBP/USD pair extended its sideways price action and is currently placed at the top end of its daily trading range, comfortably above mid-1.2800s.
The pair was seen oscillating in a broader trading range and consolidate the previous session's rather volatile swings, summing up to an intraday (two-way) move of nearly 500-pips, solely led by the latest Brexit/UK political developments.
Following a historic defeat for the UK PM Theresa May’s Brexit plan, investors now believe that the March 29 Brexit deadline could be extended or the outcome could bring about a second referendum that might end up cancelling Brexit.
However, a no-confidence vote on PM May, tabled by the opposition Labor Party leader Jeremy Corbyn held investors back from placing any fresh GBP bullish bets and failed to assist the pair to build on the overnight goodish rebound of over 200-pips.
This coupled with a modest US Dollar uptick, supported by a goodish pickup in the US Treasury bond yields, exerted some downward pressure and continued capping the pair near 100-day SMA strong barrier, near the 1.2900 handle.
Meanwhile, the pair had a rather muted reaction to the latest UK consumer inflation figures, which fell to its lowest in nearly two years and slowed to an annual rate of 2.1% in December as compared to 2.3% in November, leaving the BoE under no pressure to raise interest rates.
Technical levels to watch
GBP/USD
Overview:
Today Last Price: 1.2872
Today Daily change: -12 pips
Today Daily change %: -0.0931%
Today Daily Open: 1.2884
Trends:
Previous Daily SMA20: 1.2721
Previous Daily SMA50: 1.2759
Previous Daily SMA100: 1.2894
Previous Daily SMA200: 1.3112
Levels:
Previous Daily High: 1.2917
Previous Daily Low: 1.2668
Previous Weekly High: 1.2866
Previous Weekly Low: 1.2704
Previous Monthly High: 1.284
Previous Monthly Low: 1.2477
Previous Daily Fibonacci 38.2%: 1.2822
Previous Daily Fibonacci 61.8%: 1.2763
Previous Daily Pivot Point S1: 1.2729
Previous Daily Pivot Point S2: 1.2574
Previous Daily Pivot Point S3: 1.248
Previous Daily Pivot Point R1: 1.2978
Previous Daily Pivot Point R2: 1.3072
Previous Daily Pivot Point R3: 1.3227
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