GBP/USD Price Analysis: Bulls eye key resistance confluence above 1.2900 amid Brexit optimism

GBPUSD stays firm after breaking 100-day EMA the previous day.
EU policymakers show preparedness to work on legal agreement.
A joint of 21-day and 50-day EMAs lures the pair buyers.
61.8% Fibonacci retracement adds to the downside support.

Anil Panchal FXStreet

GBP/USD remains positive while rising to 1.2875, up 0.31% on a day, during Tuesday’s Asian session. The Cable recently benefited from news shared by The Times that suggests the European Union (EU) is softening the stand over Brexit talks.

Read: GBP crosses catching a bid in Asia on Brexit hopes

Other than the fundamentals, the pair’s ability to cross the 100-day EMA also directs the bulls towards 1.2910/20 resistance confluence comprising 21-day and 50-day EMA.

Should GBP/USD buyers remain firm beyond 1.2920, the 1.3000 psychological magnet and the mid-month high around 1.3010 will be on their radars.

On the contrary, a downside break of 100-day EMA, currently near 1.2830 may rest on 61.8% Fibonacci retracement of June-September upside by the Pound major, at 1.2721 now.

In a case where the quote provides a daily closing below 1.2721, the early July tops near 1.2670 will be in the spotlight.

GBP/USD daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.2875
Today Daily Change	41 pips
Today Daily Change %	0.32%
Today daily open	1.2834

Trends
Daily SMA20	1.2962
Daily SMA50	1.3022
Daily SMA100	1.2738
Daily SMA200	1.272

Levels
Previous Daily High	1.293
Previous Daily Low	1.2747
Previous Weekly High	1.2967
Previous Weekly Low	1.2676
Previous Monthly High	1.3396
Previous Monthly Low	1.2982
Daily Fibonacci 38.2%	1.286
Daily Fibonacci 61.8%	1.2817
Daily Pivot Point S1	1.2744
Daily Pivot Point S2	1.2654
Daily Pivot Point S3	1.2561
Daily Pivot Point R1	1.2927
Daily Pivot Point R2	1.302
Daily Pivot Point R3	1.3111

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD remains below 0.7000 amid light trading

AUD/USD fills a modest bearish gap on Monday, but remains below 0.7000 in the Asian session amid holiday-thinned liquidity. The US Dollar attempts a bounce even as US bond yields pull back from multi-year highs, limiting the pair. Moreover, diminishing odds of another RBA rate hike in November cap the Aussie.

USD/JPY hovers above 158.00 amid Japan/ US holiday

USD/JPY extends its range-bound price action into a new week, trading above 158.00 as bulls remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, softer US bond yields keep US Dollar bulls on the back foot and cap the pair's upside. However, geopolitical uncertainties could limit losses for the safe-haven buck amid thin liquidity due to a holiday in Japan and the US.

Gold drifts higher above $4,200 on surging ETF inflows, markets await US inflation data this week

Gold price gains ground to near $4,215 during the early Asian session on Monday. The precious metal extends the rally amid rising demand for bullion-backed exchange-traded funds and a weaker US Dollar. Yellow metal receives some support from rising investment demand, with inflows into gold-backed exchange-traded funds reaching a four-year high, according to Bloomberg data.

Week ahead: US CPI, France’s budget crisis and Q3 earnings to set the market tone

The US dollar held relatively strong this week, despite the disappointing US jobs report on October 2, which further decreased the probability of a back-to-back rate hike by the Fed at the upcoming gathering on October 28.

Middle East War updates: New attack launched on Saudi airport

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week. In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?