Pound Sterling Price News and Forecast: GBP/USD getting mixed clues from Brexit

FXStreet Team FXStreet

GBP/USD Price Analysis: 100-bar SMA guards immediate upside towards 1.2900

GBP/USD picks up bids around 1.2865/70 during the early Wednesday. The pair recently gained from the USD weakness during the first face-off between US President Donald Trump and his election rival Joe Biden.

Even so, buyers are waiting for a clear break above the 100-bar SMA level of 1.2865 to attack the 1.2900 threshold. Also acting as an immediate upside barrier is the weekly top near 1.2930. Should the bulls manage to conquer 1.2930, September 16 peak close to the 1.30000 psychological magnet will be the key to watch.

GBP/USD Forecast: Getting mixed clues from Brexit, negative rates

The GBP/USD pair has held at the higher end of its latest range, with a limited bullish potential. Hopes for a Brexit trade deal maintained the Pound afloat, as representatives from the EU and the EU have said that a trade deal is still possible. Still, no progress has been officially reported. The UK currency suffered a setback with BOE Governor Bailey’s comments, as he said that the central bank is not out of ammunition when it comes to additional QE. He also said that policymakers have “not ruled out using negative interest rates but are realistic about challenges from banking retail deposits.”

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold moves closer to $5,150 amid sustained safe-haven flows

Gold climbs back above $5,100 during the Asian session on Wednesday, moving away from an over one-week low, touched the previous day. Sustained safe-haven flow, amid escalating geopolitical tensions in the Middle East, acts as a tailwind for the bullion. However, a bullish US Dollar and reduced bets for more aggressive easing by the US Fed might keep a lid on the non-yielding yellow metal ahead of the US ADP report and ISM Services PMI later today.