GBP/USD: Sharp intraday turnaround falters ahead of mid-1.3100s, focus remains on Brexit vote


   •  News that Dominic Raab will back May's Brexit deal prompts some aggressive short-covering move.
   •  DUP maintained its position to vote against May's deal and kept a lid on any strong follow-through.

The GBP/USD pair rallied over 100-pips in the last hour and surged through the 1.3100 handle in the last hour, albeit quickly retreated few pips thereafter. 

Having dropped to the key 1.30 psychological mark, the pair witnessed a dramatic intraday turnaround amid rising hopes that the UK PM Theresa May might pull off an upset and get her Brexit deal pass through the Parliament.

Whispers that former Brexit Secretary Dominic Raab could possibly be supporting the UK PM Theresa May's Brexit deal seemed to have prompted some aggressive short-covering move around the British Pound.

This coupled with talks of Labour MPs potentially turning to vote with the Tories in order to get the withdrawal agreement further collaborated to the pair's sharp upsurge to an intraday high level of 1.3135.

However, the fact that the Northern Ireland's DUP maintained their position to not support the deal suggests that May might still fall short and lose by a slim margin of 10-20 votes and kept a lid on any strong follow-through.

The pair quickly retreated around 40-50 pips from session tops as the key focus remains on today's vote on the Brexit withdrawal agreement, this time without the Political Declaration regarding the future relationship with the EU. 

Technical levels to watch

GBP/USD

Overview
Today last price 1.3092
Today Daily Change 0.0044
Today Daily Change % 0.34
Today daily open 1.3048
 
Trends
Daily SMA20 1.318
Daily SMA50 1.3087
Daily SMA100 1.292
Daily SMA200 1.2978
 
Levels
Previous Daily High 1.3216
Previous Daily Low 1.3035
Previous Weekly High 1.3312
Previous Weekly Low 1.3003
Previous Monthly High 1.3351
Previous Monthly Low 1.2773
Daily Fibonacci 38.2% 1.3104
Daily Fibonacci 61.8% 1.3147
Daily Pivot Point S1 1.2983
Daily Pivot Point S2 1.2918
Daily Pivot Point S3 1.2801
Daily Pivot Point R1 1.3164
Daily Pivot Point R2 1.3281
Daily Pivot Point R3 1.3346

 

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD recovers above 0.6750 after Australian jobs data

AUD/USD recovers above 0.6750 after Australian jobs data

AUD/USD picks up a late bid and recovers above 0.6750 in Asian trading on Thursday, following the release of mixed Australian employment data. The extended post-Fed US Dollar recovery, amid a cautious market mood, could limit the pair's upside ahead of US data. 

AUD/USD News
USD.JPY jumps toward 144.00 on the road to recovery

USD.JPY jumps toward 144.00 on the road to recovery

USD/JPY gains traction and approaches 144.00 in Thursday's Asian session. The uptick of the pair is bolstered by the impressive US Dollar recovery. Investors shift their attention to the US data and the Bank of Japan interest rate decision on Friday. 

USD/JPY News
Gold price remains on the defensive amid the post-FOMC USD recovery from YTD low

Gold price remains on the defensive amid the post-FOMC USD recovery from YTD low

Gold price struggles to lure buyers despite the Fed’s jumbo interest rate cut on Wednesday. A further recovery in the US bond yields underpins the USD and caps the non-yielding metal. Concerns about an economic slowdown, along with geopolitical risks, help limit the downside.

Gold News
Ethereum attempts recovery following first rate cut in four years

Ethereum attempts recovery following first rate cut in four years

Ethereum is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds recorded $15.1 million in outflows.

Read more
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures