GBP/USD trimming the hatches with Brexit vote around the corner

Sterling traders pushed into the middle ahead of UK parliament's Brexit vote.
After Brexit deal vote, plenty of high-impact data remains on the week.

Joshua Gibson FXStreet

GBP/USD is trading softly lower into 1.2840 as investors turn their eyes to tomorrow's critical parliamentary vote on PM May's Brexit withdrawal proposal, which is expected to face resounding defeat.

Monday brings little action on the economic calendar, but Tuesday's parliamentary vote will see traders keeping a close eye on headlines today as they try to find a safe place to stand ahead of the almost-guaranteed washout of Prime Minister Theresa May's current withdrawal deal, which is seen losing by a devastating margin in the House of Commons, after which PM May's government will have just three days to deliver an alternative plan, and Cable traders are buckling down ahead of the key vote.

The early week sees little of note on the economic calendar for both the Sterling and the Greenback, but after tomorrow's parliamentary vote plenty of action is still to come this week, with inflation figures for both currencies due, as well as headline Retail Sailes in the mid-week.

GBP/USD Levels to watch

Despite Brexit issues coming in a for a landing, Cable technicals are leaning higher, according to FXStreet's own Valeria Bednarik: "from a technical point of view, the daily chart offers a bullish stance, as the pair has held throughout the week above a bullish 20 DMA, now gaining upward traction around 1.2680, as technical indicators maintain their upward slopes in positive levels, although with limited strength. In the 4 hours chart, the upside is also favored, as despite losing upward momentum, technical indicators hold near their daily highs, while the pair develops above its 20 SMA and the 200 EMA. If the pair loses the 1.2800 level, however, the risk will turn to the downside, at least short-term."

Support levels: 1.2805 1.2760 1.2720
Resistance levels: 1.2865 1.2900 1.2945

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

GBP/USD weakens to two-week lows near 1.3520

GBP/USD trades on the back foot, returning to the low 1.3500s, or two-week troughs, on Tuesday. Cable’s bearish price action follows decent gains in the Greenback at the time when investors assess latest US data releases and the persistent uncertainty in the US-Iran crisis.

EUR/USD remains offered; breaks below 1.1600

EUR/USD now accelerates its daily correction, breaching below the key 1.1600 support level on Tuesday. The pair’s daily correction comes on the back of a decent bounce in the US Dollar despite disappointing US data releases and amid persistent geopolitical concerns.

Gold flirts with multi-week lows near $4,300

Gold accelerates its correction and recedes toward the key $4,300 mark per troy ounce on Tuesday. The yellow metal’s persistent decline comes in response to the solid performance of the US Dollar and a sharp move higher in US Treasury yields across the curve.

Bitcoin and Gold Outlook: Bitcoin broadly consolidates, Gold falls as US JOLTS Job Openings rise

Bitcoin (BTC) maintains sideways trading around the immediate $78,000 support on Tuesday. The Crypto King outlook shows signs of cooling after the recent rally above $81,000. However, its downside remains protected, with major moving averages providing support and steady capital inflows absorbing some selling pressure.

Global bond market sell off haunts markets

Global sovereign bonds are selling off as we start a new month. The UK is, unsurprisingly, taking the biggest hit. Two and 10-year yields rose by 10 basis points at one point on Tuesday, and are currently higher by 7 and 8bps respectively.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.