- Sterling bulls reaching for higher levels on Brexit headlines.
- UK Average Earnings figures due later today, could derail Brexit push if expectations get missed.
The GBP/USD is heading north and grinding it out towards 1.3050 ahead of London's Tuesday market session as Sterling bulls continue to ride a train of bullish headlines surrounding Brexit.
Eurosceptic Tories in the UK Parliament are in full retreat today after The Financial Times broke news that their attempt to produce their own version of what should happen to the UK following Brexit came apart at the seams. Jacob Rees-Mogg, head of the pro-Brexit European Research Group which is heavily populated by pro-Brexit Conservative MPs stated that the group had "reconsidered" their proposal which was expected to be released today.
Headlines have been leaking over recent days that the EU is slowly rolling over into a position that will make it easier for the UK to negotiate a successful trade deal, and Pound bulls have been seizing on the good news and pumping up the GBP on Brexit hopes for the second time in two weeks, and Tuesday sees another iteration of the UK's q/y Average Earnings at 08:30 GMT, which are expected to tick upwards from 2.7% to 2.8%.
GBP/USD levels to watch
Pound bulls are looking to firm up for another push above the 1.30 major handle, and as FXStreet's own Valeria Bednarik noted: "the pair is trading firmly above the 1.3000 figure and not far below the mentioned high, offering a bullish short-term technical perspective, particularly as previous attempts to break above the mentioned threshold were quickly reverted. In the 4 hours chart, the price surpassed its moving averages, with the 20 SMA about to cross above the 200 EMA, both converging around 1.2940. Indicators in the mentioned chart have stabilized well above their midlines, holding near daily highs but losing upward momentum given that the price can go beyond the mentioned daily high. Nevertheless, the upside is favored, with scope now to test 1.3170, the 50% retracement of the 2016/18 rally."
Support levels: 1.2985 1.2940 1.2890
Resistance levels: 1.3050 1.3095 1.3130
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.