• Market participants remain confident that UK lawmakers will not support no-deal Brexit vote.
• Mixed US economic releases failed to extend any support to the USD and remained supportive.
The GBP/USD pair held on to its positive tone through the early North-American session and is currently placed few pips below session tops touched in the last hour.
With investors looking past the overnight rejection of the UK PM Theresa May's amended Brexit deal, the pair regained positive traction on Wednesday and picked up the pace since the early European trading session. Market expectations that the UK Parliament will not support Wednesday's no-deal Brexit vote turned out to be one of the key factors extending some support to the British Pound.
Meanwhile, the US Dollar bulls failed to capitalize on a goodish rebound in the US Treasury bond yields and remained on the defensive following the release of mixed US macro data, which eventually provided an additional boost and remained supportive of the intraday positive move.
Data released on Wednesday showed that durable goods orders unexpectedly rose 0.4% m/m growth in January but was largely offset by the disappointing core durable goods orders, showing a 0.1% decline during the reported month. Adding to this, the producer price index (PPI) also fell short of market expectations and also did little to impress market participants.
It would now be interesting to see if the pair is able to build on the positive momentum or once again run into some aggressive supply at higher levels as the focus remains on today's UK parliament vote on leaving the European Union without any deal, which if fails will be followed the last vote for an extension of Article 50 on Thursday.
Technical levels to watch
GBP/USD
Overview:
Today Last Price: 1.3163
Today Daily change: 88 pips
Today Daily change %: 0.67%
Today Daily Open: 1.3075
Trends:
Daily SMA20: 1.3082
Daily SMA50: 1.2986
Daily SMA100: 1.2885
Daily SMA200: 1.2984
Levels:
Previous Daily High: 1.329
Previous Daily Low: 1.3005
Previous Weekly High: 1.3269
Previous Weekly Low: 1.299
Previous Monthly High: 1.3351
Previous Monthly Low: 1.2773
Daily Fibonacci 38.2%: 1.3114
Daily Fibonacci 61.8%: 1.3181
Daily Pivot Point S1: 1.2957
Daily Pivot Point S2: 1.2838
Daily Pivot Point S3: 1.2671
Daily Pivot Point R1: 1.3242
Daily Pivot Point R2: 1.3409
Daily Pivot Point R3: 1.3527
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
Editors’ Picks
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
With all eyes peeled on the halving, Bitcoin is the center of attention in the market. The pioneer cryptocurrency has had three narratives this year already, starting with the spot BTC exchange-traded funds, the recent all-time high of $73,777, and now the halving.
Billowing clouds of apprehension
Thursday marked the fifth consecutive session of decline for US stocks as optimism regarding multiple interest rate cuts by the Federal Reserve waned. The downturn in sentiment can be attributed to robust economic data releases, prompting traders to adjust their expectations for multiple rate cuts this year.