GBP/USD stalls 3-day losing streak on delayed Brexit hopes

The GBP/USD pair took a U-turn from 1.2940 during early Asian trading on Wednesday.
The pair benefited on the news supporting delayed Brexit.
The 1.3000 seems immediate resistance for the pair to clear in order to avoid revisiting the sub-1.2900 area.

Anil Panchal FXStreet

The British Pound refrained from extending three-day losses by trading around 1.2950 against the USD in Asia on Wednesday. The pairs bounced off the 1.2940 on The Telegraph report that several cabinet ministers have secretly discussed plans to delay Brexit by eight weeks.

The report renewed hopes of delayed Brexit from the March 29 deadline to May 24 despite warnings from the PM Theresa May that such discussion is "counter-productive" to talk about.

Adding to the Pound strength was the US Dollar pullback after the US President Donald Trump’s second State of the Union speech. Trump alleged China of stealing American jobs and wealth. He went on to call the dragon nation to end the unfair trade practices, cut trade deficit and protect the US jobs. The US President also supported the need for Mexican border by saying “I will get it built."

With the expectations of soft Brexit countering uncertainty on the US-China trade deal and political chaos inside the US, the GBP/USD pair benefited at the day’s start.

Moving on, Wednesday lacks the UK important data and fewer political events are scheduled. Theresa May will travel Brussels to meet the EU policymakers and formally announce a renegotiation of her Brexit deal on Thursday. Meanwhile, some of the Tory members of parliament (MPs) are simultaneously discussing technological alternatives to the Irish border backstop plan on the European leaders’ demand. Also, Bank of England (BoE) will have its monetary policy meeting on Thursday wherein it would also release the quarterly inflation report (QIR).

Given the positive start to the day on soft/delayed Brexit hopes, any welcome developments can help the Cable extend its recent recovery.

GBP/USD Technical Analysis

The GBP/USD pair’s U-turn should surpass the 1.3000 round-figure in order to revisit the 200-day simple moving average (SMA) around 1.3037 now. Additionally, pair’s successful rise above 1.3037 can aim for the 1.3100 resistance level.

On the downside break of 1.2910, the 1.2880 and an upward sloping support line, at 1.2800, become important levels to watch.

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 trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.