GBP/USD: Gravestone doji makes this week's close pivotal, Brexit minister rules out November snap election

GBP took a beating on Friday after PM May's speech.
The currency pair created a gravestone doji on the weekly chart, signaling bullish exhaustion.
Talk of a snap election is ‘for the birds’, Brexit minister said.

Omkar Godbole FXStreet Contributor

The GBP/USD fell more than 200 pips to a low of 1.3055 on Friday after PM Theresa May said the Brexit negotiations have reached a standstill.

The sharp decline ended up creating a gravestone doji on the weekly chart - a candlestick pattern which indicates that last week began with optimism but ended on a pessimistic note. Essentially, the gravestone doji is signaling bullish exhaustion.

The bears may feel emboldened if the pair finds acceptance under the last week's low of 1.3055, while a move above 1.3277 (last week's high) would strengthen the bull grip.

That said, Brexit newsflow will likely decide which way the Pound will go. The snap election plans came to light over the weekend, courtesy of Brexit deadlock, however, UK Secretary Dominic Raab has ruled out November snap election.

The British pound may also come under pressure if September CBI industrial trends survey data, scheduled for release at 10:00 GMT, shows a big drop in manufacturing orders.

GBP/USD Technical Levels

Resistance: 1.3098 (Sept. 19 low), 1.3150 (200-day MA), 1.3277 (Fri's high)

Support: 1.3055 (Fri's low), 1.30 (psychological support), 1.2979 (50-day MA)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold eases within range, hovers around $4,360

Gold turned south early in the American session on Thursday, but holds within familiar levels as investors await more clues on US monetary policy. The August US Producer Price Index report and the US Consumer Price Index due on Friday will likely shape the market's tone ahead of the Federal Reserve monetary policy announcement next week.

Raydium's rally signals trend reversal amid network growth, buyback

Raydium maintains a firm bullish tone, posting nearly 9% gains, and extending its 41% rally from Sunday. Solana-based Decentralized Exchange is witnessing a surge in network activity and growth amid new token launches. The technical outlook for Raydium signals a potential upside toward $1.50 as momentum holds firm despite overbought conditions.

Jobs opened the door for the Fed — inflation decides whether it walks through

The latest US jobs report did not end the debate over the Federal Reserve’s (Fed) next move. It may have done something more subtle: it gave policymakers permission to keep their options open. After months of softer labour market signals, August delivered a stronger-than-expected rebound.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.