GBP/USD: Upside remains capped near 1.3070 amid Brexit stalemate


  • Bulls remain wary amid a lack of progress on Brexit talks, as talks with Labour resume today?
  • European leaders demand a reason for the prolongation, May seeks for shorter Brexit extension.
  • Technical set up points to bearish bias, as the focus remains on Wednesday’s EU Summit, FOMC minutes.

The GBP/USD pair stalled its recovery near 1.3070 and entered a phase of consolidation in the European session, as the bulls await a breakthrough on the Brexit talks between the UK PM May and the opposition Labour Party Leader Corbyn, as the talks resume later today.

In this regard, the UK Foreign Secretary Hunt was quoted as saying that the Brexit talks between both the leaders are not going to be easy, pleasing the GBP sellers further. However, the UK Labour Brexit Spokesman Starmer said that the talks are not scheduled today.

The Cable also faces a double whammy as the European leaders remain divided on a potential longer Brexit extension, as they call for an extension until March 2020. In the view of Yohay Elam, Senior Analyst at FXStreet, “Germany is the "good cop" with Chancellor Angela Merkel showing empathy, and France is the bad cop, with President Emmanuel Macron taking a tough stance despite his country's vulnerability to a hard-Brexit due to deep commercial ties.”

The spot remains vulnerable and could retest the 1.3000 level amid a lack of clarity on the Brexit issue while the EU Summit on this Wednesday, April 10th could help end the Brexit impasse. For now, it looks that the UK will exit the EU this Friday without a deal, with increased Brexit angst to weigh negatively on the GBP.

Meanwhile, a broadly weaker US dollar amid negative Treasury yields, fuelled by risk-aversion, continues to lend some support to the GBP/USD pair. Markets closely watch out for fresh Brexit developments and the US factory orders data for near-term trading opportunities.

GBP/USD Technical Levels

GBP/USD

Overview
Today last price 1.3052
Today Daily Change 0.0016
Today Daily Change % 0.12
Today daily open 1.3036
 
Trends
Daily SMA20 1.3167
Daily SMA50 1.3097
Daily SMA100 1.2931
Daily SMA200 1.2975
Levels
Previous Daily High 1.3123
Previous Daily Low 1.2987
Previous Weekly High 1.3196
Previous Weekly Low 1.2987
Previous Monthly High 1.3384
Previous Monthly Low 1.296
Daily Fibonacci 38.2% 1.3039
Daily Fibonacci 61.8% 1.3071
Daily Pivot Point S1 1.2974
Daily Pivot Point S2 1.2912
Daily Pivot Point S3 1.2838
Daily Pivot Point R1 1.3111
Daily Pivot Point R2 1.3185
Daily Pivot Point R3 1.3247

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD tumbles from the highest since 2018 on the Brexit impasse

The GBP/USD roller coaster continues with a downfall below 1.35 after the pair hit a 31-month high of 1.3539 earlier. Brexit talks have yet to yield an agreement. Negotiations are set to continue through the weekend.

GBP/USD News

EUR/USD battles 1.2150 after disappointing NFP

EUR/USD is trading off the 32-month highs amid bumps in US stimulus and vaccine distribution. Markets await the all-important US Nonfarm Payrolls missed expectations with 245K jobs gained in November. 

EUR/USD News

XAU/USD fails to break $1850 and turns to the downside

Gold peaked after the beginning of the American session at $1848/oz reaching the highest level since November 23 and then turned to the downside. It bottomed at $1829 and is it about to end the week hovering around $1830.

Gold news

Dollar downfall explained and what's next for markets

The safe-haven US dollar is hitting multi-month and multi-year lows against its peers while stocks are on fire. What is behind the risk-on rally? Valeria Bednarik, Joseph Trevisani, and Yohay Elam discuss markets' moving parts as 2020 nears its end.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures