GBP/USD: Upside remains capped near 1.2670 on Brexit anxiety, thin trades

Bears guard the 1.2670 fencing, as the US dollar attempts a comeback.
Mounting concerns over Brexit could knock-off the Sterling to 1.2605 amid thin trading and lack of fresh catalysts.

Dhwani Mehta FXStreet

The bounce in GBP/USD lost legs near the 1.2670 level, now consolidating in a tight range just ahead of the midpoint of the 1.26 handle, as the bears fight for control amid a fresh uptick in the US dollar across its main competitors while looming Brexit concerns keep the prices in check.

The US dollar witnessed volatile moves in the Asian trades, having reversed sharply its overnight rally to a high of 97.11 to print session lows of 96.77 before recovering ground to test the 97 handle. The latest leg higher it the greenback against its major peers can be mainly attributed to an uptick in S&P 500 Futures while markets remain unperturbed by the partial US shutdown.

On the GBP-side of the equation, mounting fears over a disorderly Brexit as we remain about 90 days away from the Brexit, continue to weigh down on the sentiment around the Cable. The Insitute of Directors (IoD) warned that the UK business leaders' confidence has sunk to 18-month lows as Brexit approaches and little progress remains seen.

Looking ahead, amid thin volumes and a lack of fresh fundamental news from both the UK and the US, the pair will remain at the mercy of the broader market sentiment and USD dynamics.

GBP/USD Technical Levels

GBP/USD

Overview:
    Today Last Price: 1.2657
    Today Daily change: 16 pips
    Today Daily change %: 0.127%
    Today Daily Open: 1.2641
Trends:
    Previous Daily SMA20: 1.2669
    Previous Daily SMA50: 1.2808
    Previous Daily SMA100: 1.2902
    Previous Daily SMA200: 1.3205
Levels:
    Previous Daily High: 1.272
    Previous Daily Low: 1.2631
    Previous Weekly High: 1.2708
    Previous Weekly Low: 1.2574
    Previous Monthly High: 1.3176
    Previous Monthly Low: 1.2723
    Previous Daily Fibonacci 38.2%: 1.2665
    Previous Daily Fibonacci 61.8%: 1.2686
    Previous Daily Pivot Point S1: 1.2608
    Previous Daily Pivot Point S2: 1.2575
    Previous Daily Pivot Point S3: 1.2519
    Previous Daily Pivot Point R1: 1.2697
    Previous Daily Pivot Point R2: 1.2753
    Previous Daily Pivot Point R3: 1.2786

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.