- GBP/USD staged a goodish rebound on Monday and was supported by a combination of factors.
- Easing fears of a no-deal Brexit prompted some short-covering move around the British pound.
- The prevalent USD selling bias remained support ahead of a crucial vote in the UK parliament.
The GBP/USD pair built on its steady intraday positive move and refreshed daily tops, around mid-1.2800s during the early European session.
The British pound witnessed some short-covering move on the first day of a new trading week ahead of a crucial vote on the UK government’s so-called Internal Market Bill. The legislation drew a lot of criticism and fueled market fears that the UK will crash out of the European Union at the end of the transition period.
However, reports indicated that Alliance parties could table an amendment aimed to block the bill from proceeding. Adding to this, Ex-Prime Ministers Tony Blair, along with Sir John Major urged MPs to reject the government's attempt to override parts of Withdrawal Agreement and helped eased concerns about a no-deal Brexit.
The GBP/USD pair staged a goodish bounce from the vicinity of the very important 200-day SMA and for now, seems to have stalled a two-week-old bearish trajectory. The recovery was further supported by the prevalent selling bias around the US dollar, which remained depressed amid doubts over the next round of the US fiscal stimulus measures.
Developments surrounding the Brexit saga will continue to play a key role in influencing the sentiment surrounding the sterling amid absent relevant market-moving economic releases, either from the UK or the US. Hence, it remains to be seen if the GBP/USD pair is able to capitalize on the momentum or runs into some fresh supply at higher levels.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs higher toward 1.1100 ahead of US CPI release
EUR/USD extends its daily rally toward 1.1100 on Thursday as the Euro benefits from the EU's decision to pause countermeasure against US tariffs for 90 days. Meanwhile, the US Dollar remains under pressure ahead of CPI data, further boosting the pair.
GBP/USD rises above 1.2900, US CPI data awaited
GBP/USD preserves its bullish momentum and trades above 1.2900 on Thursday. The British Pound capitalizes on risk appetite, courtesy of Trump's tariff pause, allowing the pair to push higher as market focus shits to March inflation data from the US.
Gold clings to gains above $3,110, closes in on all-time high
Gold builds on Wednesday's impressive gains and trades above $3,110 on Thursday. The broad-based selling pressure surrounding the US Dollar and retreating US bond yields on growing fears of a deepening trade war between China and the US fuel XAU/USD's rally.
US CPI data set to reveal March inflation dip as markets weigh impact of Trump’s tariffs
As measured by the CPI, inflation in the US is set to rise at an annual pace of 2.6% in March, down slightly from the 2.8% reported in February. Core CPI inflation, which excludes the volatile food and energy categories, is expected to ease to 3% in the same period from a year earlier
Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.