GBP/USD has had a volatile session oscillating within a 160 pip range after Brexit developments


  • It has been a day of complex Brexit news.
  • GBP has now settled 0.19% lower on Thursday.

Fundamental backdrop

It has been a day of mixed messaged and interesting price action as lots of Brexit headlines hit the wires. The beginning of the session was full of negativity there was short-lived after UK MP Michael Gove stated that "differences in Brexit talks still remain and the UK are looking at steps to safeguard borders after Brexit". Then approximately an hour or so later Ursula Gertrud von der Leyen the president of the European Commission said that the EU has sent formal notice to the UK for breaching its obligations under the Withdrawal Agreement. This was to be expected and any legal action could take months. 

Adding to this flurry of news EU's Barnier then had his say noting that the EU would not sign a trade deal with the UK while the current internal market bill is in place. Following this, the UK PM Spokesman said the UK are committed to working through the joint committee to find a solution to the Northern Ireland protocol.

GBP/USD 30-min chart

The 30-minute chart shows the extent of the volatility in the session on Thursday. The price has now settled in the middle of the 160 pip range close to 1.2895 - 1.29. The area marked in orange is closed to the 1.29 area and is now the focal point of the congestion area. 

If the price does close near the current level it will end the row of three consecutive positive closes in the pair and this may signal a reversal in the trend. There could be some sideways action first however but tomorrow the market will get the latest non-farm payroll data and this could cause some more volatility.

GBP/USD Analysis

Additional levels

GBP/USD

Overview
Today last price 1.2894
Today Daily Change -0.0027
Today Daily Change % -0.21
Today daily open 1.2921
 
Trends
Daily SMA20 1.2915
Daily SMA50 1.3028
Daily SMA100 1.2751
Daily SMA200 1.2719
 
Levels
Previous Daily High 1.2943
Previous Daily Low 1.2806
Previous Weekly High 1.2967
Previous Weekly Low 1.2676
Previous Monthly High 1.3482
Previous Monthly Low 1.2676
Daily Fibonacci 38.2% 1.289
Daily Fibonacci 61.8% 1.2858
Daily Pivot Point S1 1.2837
Daily Pivot Point S2 1.2753
Daily Pivot Point S3 1.27
Daily Pivot Point R1 1.2974
Daily Pivot Point R2 1.3027
Daily Pivot Point R3 1.3112

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops below 1.1850 amid growing covid concerns

EUR/USD has dropped under 1.1850 as European coronavirus cases hit records. France exceeded 50K daily cases and Spain announced a state of emergency. US fiscal stimulus talks remain stuck ahead of the elections. 

EUR/USD News

GBP/USD pressured towards 1.3000 amid downbeat market mood

GBP/USD has been extending its losing streak amid a surge in COVID-19 cases in the UK and elsewhere. Investors are shrugging off reports of progress in Brexit talks. 

GBP/USD News

XAU/USD pushed and pulled in jittery market conditions

The price of gold has been testing the bearish commitments above the $1,900 psychological level following a brief spell below it, printing a low of $1,891.50.

Gold News

Bitcoin vs gold: Safe haven battle

A new idea has been floating around in Safe Haven Trading. Well, it’s not entirely new, but it’s quite controversial to say the least. For the longest time, gold has been considered to be the purest form of safe haven trading. 

Read more

WTI heavily on the back foot, but right tail remains fat

The coronavirus pandemic gets a new lease of life on the commodities market's risk barometer and at the time of writing, WTI is trading at $38.52 and has travelled from a high of $39.72 to a low of $38.31.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures