GBP/USD rallies over 40-pips from 2-week lows, refreshes session tops

   •  Stages a goodish rebound to snap four consecutive days of losing streak.
   •  Brexit jitters/follow-through USD buying might keep a lid on further gains.

The GBP/USD pair quickly reversed an early European session dip to two-week lows and rallied around 40-45 pips to refresh session tops in the last hour.

Despite a series of weak PMI prints recently, which reaffirmed the effects of Brexit uncertainties on businesses, the pair showed some resilience at lower levels and managed to regain positive traction to snap four consecutive days of losing streak. 

The uptick lifted the pair back above mid-1.2900s, beyond Asian session swing high, touched in reaction to a report by the Telegraph that several cabinet ministers have secretly discussed plans to delay Brexit by eight weeks - from the current March 29 deadline to May 24. 

Having said that, a possible extension of Article 50 still looks unlikely at this juncture, which coupled with growing market expectations for a no-deal Brexit might continue taking its toll on the Sterling and keep a lid on any runaway rally for the major.

Hence, it would be prudent to wait for a strong follow-through up-move beyond the key 1.3000 psychological mark before calling this a real turnaround and concluding that the uptick is backed by some genuine buying rather than short-covering from oversold conditions.

Technical levels to watch


    Today Last Price: 1.2971
    Today Daily change %: 0.12%
    Today Daily Open: 1.2956
    Daily SMA20: 1.298
    Daily SMA50: 1.2803
    Daily SMA100: 1.2898
    Daily SMA200: 1.3034
    Previous Daily High: 1.3056
    Previous Daily Low: 1.2925
    Previous Weekly High: 1.3212
    Previous Weekly Low: 1.3043
    Previous Monthly High: 1.3214
    Previous Monthly Low: 1.2438
    Daily Fibonacci 38.2%: 1.2975
    Daily Fibonacci 61.8%: 1.3006
    Daily Pivot Point S1: 1.2902
    Daily Pivot Point S2: 1.2848
    Daily Pivot Point S3: 1.2771
    Daily Pivot Point R1: 1.3032
    Daily Pivot Point R2: 1.3109
    Daily Pivot Point R3: 1.3163


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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hits fresh three-week lows as optimism from German data fades

EUR/USD has hit a fresh three-week low below 1.1070 as optimism from better-than-expected German PMIs fades. The data still points to a downturn. Tension mounts ahead of Fed's Powell critical speech on Friday.


GBP/USD surges above 1.2200 on Merkel's Brexit optimism

GBP/USD is trading above 1.2250, at the highest this month after German Chancellor Merkel said a solution to the Irish backstop can be found by October 31st. UK PM Johnson is meeting French President Macron.


USD/JPY: Weaker below 106.50, focus on T-yields ahead of Powell

USD/JPY trades weaker below the 106.50 level, tracking the negative S&P 500 futures and a cautious sentiment on the Asian equities, as attention shifts from the FOMC minutes to the Fed's Powell speech for fresh direction. 


Gold plummets to fresh nine-day lows near $1,492 on surging US T-bond yields

The XAU/USD pair came under renewed bearish pressure in the last hour and broke below the critical $1,500 as the rising US Treasury bond yields made it difficult for the safe-haven gold to find demand.

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: BTC to $50,000 or Gold to $5,000? Current crypto levels to watch

"Gold will reach $5,000" claimed Peter Schiff, a crypto critic, and a gold bug. "Bitcoin will reach $50,000," said Tom Lee. Both influences clashed on social media and on television about future prices. 

Read more