GBP/USD analysis: wait-and-see mode ahead of Brexit's deal vote

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2749

The Sterling held on to tight intraday range against the greenback, as investors wait for some Brexit certainties.
UK macroeconomic calendar quite busy this Friday, with monthly GDP included.

The GBP/USD pair spent the day within familiar levels, shedding some ground to settle around 1.2750, as no new Brexit-related headlines hit the wires, and prevalent dollar's weakness helped to keep the Pound afloat. Speculative interest is holding its breath in regards to the Sterling, ahead of the key Parliamentary vote on May's Brexit deal next week. In the meantime, the UK will release multiple relevant figures this Friday, including Manufacturing and Industrial Production, trade data, and monthly GDP. In the Brexit front, opposition leader Jeremy Corbin said that he would call for an election to break the deadlock.

The pair turned neutral in the short-term, as the 4 hours chart shows that technical indicators lack directional strength, stuck around their midlines, while the price is battling and also directionless 20 SMA. The 200 EMA continues providing an intraday support at around 1.2720, with scope for deeper slides on a break below it. Selling interest will also seize their chances on attempts to advance beyond the 1.2800 figure.

Support levels: 1.2720 1.2680 1.2640

Resistance levels: 1.2780 1.2815 1.2850

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 stays below 1.1850 after dismal German sentiment data

EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls toward 1.3550, pressured by weak UK jobs report

GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.