GBP/USD
A welcome break from the politics of Brexit ended yesterday as a speech from UK Prime Minister Johnson laid out an initial hard line stance from the UK in trade negotiations with the EU. Sterling was hit hard and fell back around -220 pips versus the dollar. This turned what was an impressive move higher last week completely on its head. However, Cable is back around the $1.2900/$1.3000 support band which, on several occasions in the past month, has been the basis of a floor. This is therefore an important moment for sterling. The move continues what we have been increasingly seeing as an uncertain and indecisive outlook on Cable, but could it be more? An early tick higher in the Asian session has been sold into by the Europeans, now -50 pipis lower on the day. Our strategy that Cable is a buy into weakness is coming under pressure. The technicals are beginning to deteriorate and will do so if the market closes around here. RSI has been oscillating between 45/60 for the past few weeks, but has dropped to a near 4 month low this morning. MACD lines and Stochastics are mixed around neutral. Closing under $1.2950/$1.2960 is a negative signal and we change our positive outlook on a close under $1.2900. Yesterday’s high at $1.3215 is key, and the early resistance is at $1.3025.
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Editors’ Picks
EUR/USD holds losses below 1.0900 amid cautious mood
![EUR/USD holds losses below 1.0900 amid cautious mood](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-59004818_XtraSmall.jpg)
EUR/USD is posting small losses while below 1.0900 in the European session on Tuesday. The pair treads water amid a cautious market mood, as traders weigh the US political updates and China slowdown worries. The US Dollar holds steady, in the absence of top-tier economic data.
GBP/USD stays pressured toward 1.2900 as US Dollar stabilizes
![GBP/USD stays pressured toward 1.2900 as US Dollar stabilizes](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-900067218_XtraSmall.jpg)
GBP/USD is on the defensive toward 1.2900, lacking firm direction in European trading on Tuesday. The US Dollar looks to stabilize after the early decline, weighing on the pair. Traders await mid-tier US housing data for fresh trading impetus.
Gold price remains at bay with US data in focus
![Gold price remains at bay with US data in focus](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-nuggets-14424039_XtraSmall.jpg)
Gold price trades with caution in the countdown to a string of US economic data. Firm Fed rate cut hopes to keep the upside in the US Dollar limited.
Bitcoin price struggles around $67,000 as US Government transfers, Mt. Gox funds movement weigh
![Bitcoin price struggles around $67,000 as US Government transfers, Mt. Gox funds movement weigh](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_forex_XtraSmall.jpg)
Bitcoin struggles around the $67,000 mark and declines by 1.7% at the time of writing on Tuesday at around $66,350. BTC spot ETFs saw significant inflows of $530.20 million on Monday.
Big tech rebound ahead of earnings, Oil slips
![Big tech rebound ahead of earnings, Oil slips](https://editorial.fxstreet.com/images/TechnicalAnalysis/Volatility/Bands%20(bollinger)/stock-market-graph-gm532464153-55981218_XtraSmall.jpg)
Tesla and Google are due to report earnings today after the bell, and their results could shift the wind in either direction. Despite almost doubling its stock price between April and July, Tesla sees appetite for its cars and its market share under pressure.