GBP/USD gathering pace for a test of 1.3220 ahead of Carney

Renewed Brexit optimism amid UK PM May’s plans, USD weakness remain supportive.
Will it test 1.3260 ahead of Carney’s speech, UK Parliament vote on another round of amendments holds the key.

Dhwani Mehta FXStreet

The GBP/USD pair continuous to trade cautiously around the 1.32 handle, as the bulls await fresh Brexit-related headlines for a retest of three-month highs at 1.3217 reached last Friday.

Focus on UK Parliamentary vote on Brexit Plan B

Having faced rejection just shy of the multi-month highs above the 1.32 handle in early Asia, the spot retreated to 1.3190 levels before entering a phase of bullish consolidation, as markets digest the latest Brexit-related developments, with the Irish Foreign Minister Coveney having expressed no need for further compromise on the Irish border backstop.

Meanwhile, the sentiment around the pound also remains buoyed by the Sun News report, citing that the UK PM May privately told the Cabinet she will rule out a no deal Brexit.

The ongoing upbeat momentum around the Cable found extra legs on Friday following the reports that the Northern Irish Democratic Unionist Party (DUP) decided to privately agree to support UK PM May’s ‘Plan B’ Brexit Deal.

Adding to it, the US dollar was broadly sold-off into a Dow Jones Newswires report that suggested the Fed would pause its balance sheet normalization sooner than expected. Moreover, dovish expectations from the FOMC decision due to be announced on Wednesday also keep the USD bulls on the back foot.

Looking ahead, the UK Parliamentary vote on the amendments to the UK PM May’s Brexit Plan B due tomorrow will remain in the spotlight, keeping the GBP traders on the edge. In the meantime, the BOE Governor Mark Carney’s speech due later today at 1430 GMT will be closely eyed for near-term trading impetus.

Carney is likely to participate in a question and answer session, along with other MPC members, about the future of money at the Bank of England's Future Forum, in London.

GBP/USD Technical Levels

GBP/USD

Overview:
    Today Last Price: 1.3206
    Today Daily change: -7 pips
    Today Daily change %: -0.05%
    Today Daily Open: 1.3213
Trends:
    Daily SMA20: 1.2852
    Daily SMA50: 1.2765
    Daily SMA100: 1.2898
    Daily SMA200: 1.3062
Levels:
    Previous Daily High: 1.3214
    Previous Daily Low: 1.3053
    Previous Weekly High: 1.3214
    Previous Weekly Low: 1.283
    Previous Monthly High: 1.284
    Previous Monthly Low: 1.2477
    Daily Fibonacci 38.2%: 1.3152
    Daily Fibonacci 61.8%: 1.3114
    Daily Pivot Point S1: 1.3106
    Daily Pivot Point S2: 1.2999
    Daily Pivot Point S3: 1.2945
    Daily Pivot Point R1: 1.3266
    Daily Pivot Point R2: 1.332
    Daily Pivot Point R3: 1.3427

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD corrects lower, returns to 1.1650

EUR/USD could not sustain an earlier move to fresh tops just above 1.1680 on Thursday, coming under fresh selling pressure and revisiting the mid-1.1600s in the latter part of the NA session. The pair’s correction comes in response to an acceptable bounce in the US Dollar.

GBP/USD attempts some consolidation near 1.3350

GBP/USD is alternating gains with losses near 1.3350 on Thursday. The Greenback’s attempts to recover aren't really sticking, upbeat data or not, as traders stay confident that the Fed will deliver a 25 bps rate cut at its final meeting of the year.

Gold bull-bear tug-of-war extends ahead of US data

Gold struggles around $4,200 early Friday, eyes a modestly flat close to the week. US Dollar turns south alongside Treasury bond yields amid Fed rate cut buzz. Gold remains confined within a tight range; buyers refuse to give up yet.

XRP slides amid record on-chain activity, mixed technical signals

Ripple (XRP) is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.

Why the Fed may cut rates in December: Understanding the policy shift

The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.

XRP edges lower despite record on-chain activity and steady ETF inflows

Ripple is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.