GBP/USD: eyes on Brexit negociations; pound has been robust on 1.25 handle

Ross J Burland FXStreet

GBP/USD is currently trading at 1.2540 at time of writing with an early starting high at 1.2564 and a low of 1.2526.

GBP/USD is robust despite the recent downgrade to 2016 Q4 UK GDP. This was dropped by a marginal 0.1% from the previous 2.0% on the back of total business investment falling by 0.9% in the last three months of 2016.

Weekend politics: Brexit getting personal, Trump about to wage war on N.Korea?

Meanwhile, the focus has been more with Brexit; The pound closed at 1.2528 for the month of March. Opening today at 1.2542, there will be plenty going on with sterling from here on given the recent triggering of Article 50 and the subsequent potential for two-year's worth of negotiations with the EU. At the same time, we had headline last week that the Scottish Parliament has backed FM minister Sturgeon to trigger a second independence referendum.

GBP/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that technically, the daily chart for the pair shows that the upside is favored: "The price settled above the 23.6% retracement of its January's rally and well above a bullish 20 SMA, whilst the RSI indicator resumed its advance within positive territory, now heading north around 60. In the 4 hours chart, technical indicators maintain upward slopes well into positive territory, whilst the 20 SMA has turned flat well below the current level, in line with the longer-term perspective."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD remains below 1.1850 after US data

EUR/USD struggles to gain traction and trades in a narrow range below 1.1850 on Wednesday. The US Dollar stays resilient against its rivals following the better-than-expected Durable Goods Orders and housing data, limiting the pair's upside ahead of FOMC Minutes.

GBP/USD stays in narrow channel above 1.3550 ahead of FOMC Minutes

GBP/USD holds its ground following Tuesday's slide and moves sideways above 1.3550 midweek. Although the data from the UK confirmed that inflation cooled in January, the positive shift seen in market mood helps the pair keep its footing as investors wait for the Fed to publish the minnutes of the January policy meeting.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.