GBP/USD rebounds on Brexit news ahead of the London open

  • The GBP/USD pair trades around 1.2865 during early Thursday.
  • The pair reversed from 1.2840 on news of likely delayed Brexit.
  • The 1.2840 may offer immediate support contrast to 1.2920 acting as nearby resistance.

The British Pound (GBP) took a U-turn from 1.2840 against the USD while heading towards the UK markets’ open on Thursday. The pair declined Wednesday as softer than expected inflation numbers from the UK contrasted with the US consumer price index (CPI) statistics. The GBP/USD pair, also known as the Cable, received boost earlier in the day when The Times reported the news that 40 former British Ambassadors call on the Prime Minister Theresa May to delay Brexit.

On Wednesday, the GBP/USD pair weakened as January month the UK CPI lagged behind 1.9% market consensus to 1.8% on a yearly basis whereas monthly figures shrank more than -0.7% forecast to -0.8%. The British inflation numbers were in contrast to the US releases that said headline CPI YoY rose to 1.6% from 1.5% expectations while beating the 2.1% forecast for the Core CPI YoY by being unchanged at 2.2% during the first month of 2019.

At the start of Thursday, when speculations were already favoring delayed Brexit deadline, The Times reported that 40 ex-British Ambassadors urged the UK PM May to delay the Brexit deadline from presently holding 29 March. The news helped the GBP to register across the board strong on hopes of soft and/or delayed Brexit.
Looking forward, lack of British economics to publish puts higher emphasis on developments at the UK Parliament. PM May is still trying hard to get her plan through parliament rather than tabling the delay. 

On the flip side, the US Treasury Secretary Steve Mnuchin and the trade representative Robert Lighthizer will start two-day trade negotiation with their Chinese counterparts headed by the President's top aide Liu He. Recent comments from the Treasury Secretary and the President signalled brighter chances of a trade deal, if not then an extension of tariffs by nearly 60 days from the March 01 deadline.

In addition to the politics, monthly release of US Retail Sales, likely to register soft growth figure of 0.1% from 0.2% prior on a monthly basis, can also play its role.

GBP/USD Technical Analysis

The pair needs to surpass the 1.2920 upside barrier in order to aim for 1.2980 and 1.3000 mark.

On the downside break of 1.2840, sellers can aim for 1.2810 and the 1.2780 supoprts.

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: Bid in holiday-thinned trade, bullish channel breakdown confirmed

EUR/USD is mildly bid in Asia, but the gains could be short-lived, as yesterday’s sell-off seems to have put sellers in commanding position for the near term. 

EUR/USD News

GBP/USD battle around 1.3000 not looking good for bulls

An upward surprise in UK Retail Sales, fell short of boosting the Pound, hurt by Brexit uncertainty. Investors heading into a long weekend stocked in USDs.

GBP/USD News

USD/JPY: No reaction to BOJ’s decision to cut its routine buying of long-dated bonds

USD/JPY pair is currently trading at 111.93, having clocked a 112.00 earlier today. The Bank of Japan (BOJ) cut its purchases of bonds with maturities between 10 and 25 years to ¥160 billion, down ¥20 billion from the previous ¥180 billion. 

USD/JPY News

Data keeps markets moving ahead of Easter weekend

The pound dropped on Thursday despite impressive retail sales data that showed UK consumers defying Brexit uncertainties. Even as the UK was heading towards a no deal Brexit in March UK households were still spending at an impressive rate.

Read more

Gold Technical Analysis: Eyes corrective bounce on bullish 4H RSI divergence

Gold snapped its five-day winning streak with a 0.19 percent gain on Thursday, confirming a bullish divergence of the relative strength index on the 4-hour and hourly charts. 

Gold News

majors

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •