GBP/USD rises to 1.2920 as UK PM May again heads for Brussels

GBP/USD trades around 1.2920 ahead of London open on Monday.
Expectations surrounding soft Brexit and upbeat UK retail sales recently pushed the pair upwards.
The 1.2930 and 1.2980 can act as immediate resistances with 1.2840 likely being nearby rest.

Anil Panchal FXStreet

The GBP/USD pair rose to the day’s high of 1.2920 heading towards European sessions on Monday. Speculations that the UK Prime Minister Theresa May could convince EU over favorable or delayed departure pleased the British Pound (GBP) traders off-late. PM May heads to Brussels on Monday in order to hold talks with Commission President Jean-Claude Juncker.

On Friday, the news that Irish foreign minister has struck a conciliatory tone helped built initial GBP trade sentiments. The up move was then backed by better than forecast +0.2% growth of the UK Retail Sales m/m to 1.1%.

However, a recent report from Reuters said that France isn’t likely to offer concessions on the Irish backstop to end the stalemate over the Brexit negotiations as notified earlier by the UK Times report.

With nearly six weeks to leave the EU, the UK PM May is struggling to keep her plan on the table after witnessing another parliament defeat last week. She has already promised to try till February 26 to get a favorable trade deal from the EU and update her progress in the parliament while British policymakers could get the control from February 27 onward.

The European Commission President Jean-Claude Juncker has been tough on Brexit and might not relinquish his control over the Irish backstop, which in turn could negatively affect the present optimism. Though, actual updates from the meeting can only confirm the proceedings.

GBP/USD Technical Analysis

Given the break of 1.2915, the GBP/USD pair needs to surpass 1.2930 in order to aim for 1.2980 and 1.3000 resistances.

Failure to hold recent recovery can drag the quote back to 1.2840 and 1.2780 support levels.

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.

GBP/USD clings to daily gains near 1.3350

GBP/USD holds just in positive territory around 1.3350 on Friday as the Greenback keeps a vacillating price action. With Fed rate hike expectations easing and US markets closed for the Independence Day holiday, Cable remains on track to post solid weekly gains.

EUR/USD remains sidelined around 1.1440

EUR/USD holds on to its recent gains and consolidates around 1.1440 at the end of the week as the US Dollar lacks clear direction. In the meantime, trading conditions remain subdued, with volatility constrained by the closure of US markets for the Independence Day holiday.

Gold flirts with two-week highs, targets $4,200

Gold extends its recovery for a third straight day, advancing toward the $4,200 mark per troy ounce on Friday. The precious metal looks set to snap a four-week losing streak as softer-than-expected June US NFP data prompt investors to scale back expectations of further Fed tightening.

Crypto Today: Bitcoin, Ethereum, XRP advance amid renewed capital inflows

Bitcoin maintains its upward momentum, holding above the $61,000 mark at the time of writing on Friday. Major altcoins such as Ethereum and Ripple are also posting gains, signaling a modest uptick in market sentiment and renewed risk appetite among investors.

The Iran war failed to trigger a recession. Can the US economy keep defying expectations?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.