GBP/USD stays positive on the Brexit day, eyes on UK PM Johnson’s speech

  • GBP/USD keeps the BOE-led gains as the UK approaches the day to leave the EU after 47 years.
  • The US preferred respecting its friendship with the UK in the Huawei case.
  • UK PM will hail the "dawn of a new era”, the EU-UK trade talks will be the key post-Brexit.

GBP/USD holds onto recovery near 1.3100 while heading into the London open on Friday, the Brexit day. The pair registered sharp gains the previous day as the BOE announced no rate cuts while the US-UK trade tension receded. The traders will now keep eyes on the UK PM Boris Johnson’s speech at 22:00 GMT during the day of joy and sorrow.

The Bank of England’s (BOE) previously bearish bias failed to gain much support among the monetary policy committee (MPC) as the UK central bank had to leave the benchmark interest rate untouched on Thursday. The central bank watered down its growth forecast and marked Brexit uncertainty as a risk but those were mostly ignored.

Elsewhere, the US kept the UK at “the front of the line” despite disagreements over Britain’s decision concerning China’s Huawei’s inclusion in building 5G networks.

Earlier during the day, the Times broke the news that the UK PM wants Canada-style deal with the EU but nothing has confirmed. Markets witnessed risk-reset amid mixed headlines concerning China’s coronavirus. The World Health Organization (WHO) finally rang the alarm but joined Chinese diplomats to sound cautiously optimistic.

While there will be a number of celebrations and sad farewell rallies during the day, the Tory leader’s words on the key time will grab major attention. Even if expectations are low that UK PM Johnson signals anything relating to the future trade relations with the EU, a surprise hint will be taken seriously. On the other hand, the US economic calendar has multiple readings including Chicago PMI and Michigan Consumer Sentiment to make traders busy.

Technical Analysis

A five-week-old symmetrical triangle between 1.3140 and 1.2980 will keep the traders busy unless any drastic move.

Additional important levels

Today last price 1.3099
Today Daily Change 0.0005
Today Daily Change % 0.04
Today daily open 1.3094
Daily SMA20 1.3064
Daily SMA50 1.3066
Daily SMA100 1.2867
Daily SMA200 1.2694
Previous Daily High 1.3111
Previous Daily Low 1.2977
Previous Weekly High 1.3175
Previous Weekly Low 1.2962
Previous Monthly High 1.3515
Previous Monthly Low 1.2896
Daily Fibonacci 38.2% 1.306
Daily Fibonacci 61.8% 1.3028
Daily Pivot Point S1 1.301
Daily Pivot Point S2 1.2927
Daily Pivot Point S3 1.2876
Daily Pivot Point R1 1.3144
Daily Pivot Point R2 1.3195
Daily Pivot Point R3 1.3278



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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more