GBP/USD Forecast: Sterling on a back foot ahead of Brexit Plan B debate

Mario Blascak, PhD Independent Analyst

The GBP/USD is trading little changed on the downside ahead of the UK parliamentary debate on Plan B for Brexit scheduled for the afternoon.
The UK Prime Minister Theresa May reportedly accepted Brady’s amendment calling for the planned Irish backstop to be replaced by "alternative arrangements".
The Brexit Plan B amendments will be debated and eventually voted in the House of Commons later today, or during this week.

The GBP/USD is trading on a backfoot at around 1.3130 on Tuesday ahead of the Uk House of Commons starting its debate and eventually voting in the amendments to Brexit deal proposed by the members of parliament.

The UK Prime Minister is said to accept so-called Brady’s amendment calling for the planned Irish backstop to be replaced by "alternative arrangements". Such a solution is expected to be rejected by the European Union.

Sterling rose 3.1% this year so far and it is the best performing major currency so far with spot FX rate reaching 1.3214 late last Friday as the market priced in almost zero chances of a no-deal Brexit. Ahead of the Brexit amendments vote, the uncertainty increased and it is weighing on Sterling.

Technically the GBP/USD jumped above downward sloping trendline and by breaking above 1.3000 it has also conquered the major resistance line representing 38.2% Fibonacci retracement of the upmove from 1.2130 to 1.4177.

The technical oscillators including the Relative Strength Index and Slow Stochastics are both elevated with Slow Stochastics making the bearish crossover in the Overbought territory. The GBP/USD rose to a fresh 15-week high of 1.3214 and the GBP/USD is set to experience the further corrective pullback. The bullish breakout of the Fibonacci level of 1.2990-1.3000 becomes a support level now and the first price target on the downside. On the upside, the immediate resistance is at around 1.3150.

The GBP/USD daily chart

Author

Mario Blascak, PhD

Independent Analyst

Dr. Mário Bla&scaron;čák worked in professional finance and banking for 15 years before moving to journalism. While working for Austrian and German banks, he specialized in covering markets and macroeconomics.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold buyers hesitate amid holiday-thinned trading

Gold trades volatile, but within range, as US, China holidays-led thin trading exaggerates moves. The US Dollar extends range play into the US GDP week, with markets pricing at least two Fed rate cuts this year. Technically, Gold tests key support at $5,000; daily RSI still remains bullish.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.