• Market participants remain non-committal amid persistent Brexit uncertainties.
• Risk-on mood further collaborated towards keeping a lid on any runaway rally.
• Today’s ADP report and ISM PMI might help trader grab short-term opportunities.
The GBP/USD pair quickly reversed an early European session dip to the 1.2700 handle and has now recovered around 35-40 pips from daily lows.
The UK PM Theresa May's Brexit comments, saying that “it’s my deal, no deal, or no Brexit at all” further raised hopes of a possible no Brexit option, though unlikely, and extended some support to the British Pound.
Earlier this week, the General Advocate for the European Court of Justice said that the UK could unilaterally revoke Article 50 had fueled hopes for British supporters of remaining in the European Union.
The uptick, however, lacked any strong conviction/follow-through as market participants remain non-committal ahead of the meaningful Parliamentary vote on the UK PM Theresa May’s negotiated deal on Dec. 11th.
Adding to this, a sudden spike in global risk-aversion provided a minor lift to the US Dollar relative safe-haven status and further collaborated towards keeping a lid on any meaningful up-move for the major.
Global risk sentiment took a sharp knock following the arrest of a leading Chinese executive in Canada, which threatened to escalate US-China trade tensions and dampened investors' appetite for perceived riskier assets.
Developments surrounding the UK’s looming departure from the EU will remain the next big catalyst for the pair's firm near-term direction. In the meantime, today's US macroeconomic data - ADP report and ISM non-manufacturing PMI will be looked upon to grab some short-term trading opportunities.
Technical levels to watch
Any subsequent up-move is likely to confront resistance near the 1.2775-80 region and is closely followed by the 1.2800 round figure mark. On the flip side, the 1.2700 handle might continue to act as an immediate support, below which the pair is likely to head back towards challenging yearly lows, around the 1.2660 region.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.