GBP/USD analysis: EU keeps refusing to renegotiate Brexit

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2649

PM May met a wall of rejection in Brussels, no new deal could be discussed.
UK Parliament wants to vote before year-end, May not willing to submit the deal until January.

The GBP/USD pair surged to 1.2686 at the beginning of the day, as the Pound got support from PM's May winning the leadership vote Wednesday. An optimistic but battered Prime Minister traveled to Brussels but met a wall of rejection to her attempt to get concessions on the current Brexit deal from fellow EU leaders. Meanwhile, the deal still needs to pass the Commons, with lawmakers urging PM to vote before the Christmas recess and Downing Street calling for January as a possible date. The Sterling gave up most of its daily gains to trade back in the lower end of the 1.26 range against its American counterpart. The UK doesn't have relevant data scheduled for this Friday.

The GBP/USD pair trades around 1.2650, developing above a firmly bearish 20 SMA and well below the 200 EMA, which heads marginally lower at around 1.2820, while technical indicators have lost the positive momentum and now hover around their midlines. All of these is not enough to confirm an upcoming decline, yet skews the risk to the downside, also headed in this direction from the fundamental front. The pair has a relevant intraday low at 1.2591, now the immediate support, en route to a retest of the yearly low of 1.2476.

Support levels: 1.2590 1.2555 1.2510

Resistance levels: 1.2665 1.2700 1.2745

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.