GBP/USD shows less reaction to latest Brexit headlines

GBP/USD remains on a back foot amid recent UK political news.
Rebel MPs readying for early-September action.
UK CPI, trade/political news in the spotlight.

Anil Panchal FXStreet

GBP/USD keeps taking the rounds to two-day long ascending support-line while trading near 1.2060 during Wednesday’s Asian session.

The Cable responded to the latest Brexit headlines with a cold heart as traders are cautious ahead of China’s key activity data for July after witnessing surprise increase in the previous month. Further to note, the quote earlier dropped after the mixed British jobs report and positive trade headlines.

Among the news, the UK’s Speaker of the House of Commons, John Bercow recently became a strong force against the Prime Minister (PM) Boris Johnson’s “do or die” pledge, as per The Telegraph. Mr. Bercow showed readiness to stop the no-deal Brexit by all means.

Additionally, ex-Chancellor Philip Hammond wrote a letter to the no10, as per The Sun, signed by 20 other members of the Parliaments (MPs), that shows the PM ruins chances of any deal with the EU. In response to it, some of the Brexiteers termed him as doing the EU’s negotiation for it.

Even if some of the key British lawmakers are preparing to challenge PM Johnson on September 06, poll results from ComRes survey recently showed that the Tory leader has public support for his Brexit pledge.

Moving on, the UK’s July month Consumer Price Index (CPI) and news concerning the US-China trade will be watched closely for near-term direction.

Technical Analysis

Thursday’s low near 1.2095 acts as an immediate resistance to aim for 1.2155 while pair’s downside beneath two-day long support-line, at 1.2055, can trigger fresh declines to 1.2015 and 1.2000 round-figure.

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.

EUR/USD revisits 1.1780, or daily lows

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to reach daily troughs on Thursday. The pair’s decline comes in response to a sudden bout of USD strength amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD retreats from tops, approaching 1.3540

GBP/USD partially sets aside Wednesday’s strong advance and recedes to the 1.3540 region on Thursday. Cable’s modest retracement follows the equally acceptable gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold clings to gains just below $5,200, focus on geopolitics

Gold is edging modestly higher on Thursday, adding to Wednesday’s uptick and holding just below the $5,200 mark per troy ounce against the backdrop of modest gains in the US Dollar. In the meantime, attention is turning to the geopolitical scenario following US-Iran nuclear talks.