GBP/USD analysis: no Brexit deal, no Pound strength

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3374

DUP menaced to withdraw support to PM May.
GBP/USD nearing critical support at 1.3345.

The GBP/USD pair fell to 1.3357 its lowest in a week this Wednesday, on diluting hopes the UK and the EU could reach an agreement on Brexit this week. Despite the UK PM May has told the House of Commons that "very good progress" has been made on Brexit negotiations, details of cross-border trade are yet to be seen. The DUP has menaced to withdraw its support to the PM, amid their belief that an effective custom would divide the Irish Sea. Furthermore, Brexit Secretary David Davis said that the UK will not “leave one part of the United Kingdom behind”, clearly referring to Northern Ireland and its desire to remain in the single market post-Brexit, while failing to clarify the government's assessment of Brexit consequences. The pair trades some 20 pips above the mentioned low, maintaining a short-term negative bias according to technical readings in the 4 hours chart, as the Momentum indicator heads south at fresh 1-month low, while the RSI also heads south, around 40. Also, the 20 SMA has accelerated lower well above the current level, while after breaking lower, recoveries are being contained by sellers aligned around the 50% retracement of the latest bullish run at 1.3385. The immediate support is 1.3345, the 61.8% retracement of the same rally, with a break below it opening doors for an extension toward 1.3250/60 during the upcoming sessions.

Support levels: 1.3345 1.3300 1.3260

Resistance levels: 1.3385 1.3430 1.3465

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 clings to strong gains above 1.1850 on USD weakness

EUR/USD preserves its bullish momentum to start the week and trades above 1.1850. The US Dollar struggles to find demand ahead of Wednesday's critical January employment report and helps the pair continue to push higher.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold holds steady above $5,000

Gold builds on the gains it posted to end the previous week and holds steady above $5,000 on Monday. Data released over the weekend showed that the People's Bank of China extended its Gold buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.