GBP/USD: Optimism surrounding delayed Brexit and US Dollar weakness highlights 1.3270

GBP/USD trades near 1.3235 before the London open on Monday.
The pair has lately been supported by expectations of a delay in Brexit and weaker USD.
1.3270 is likely immediate resistance whereas 1.3190 may offer nearby support to the pair.

Anil Panchal FXStreet

The British Pound (GBP) is on the bids near 1.3240 against its US counterpart (USD) while heading towards the European session on Monday. The GBP/USD pair took advantage of the latest headlines suggesting a delayed Brexit and the US President Donald Trump’s comments dragging the USD downwards. Investors may now pay close attention to the Brexit developments as the UK approaches the deadline to leave the EU region (as of now).

A slew of top-notch politicians from the UK and Ireland were on wires recently. Some of them, like the UK Attorney General Geoffrey Cox, showed the likeliness to ease conditions to please the EU officials whereas few others, like British Trade Minister Liam Fox and junior Justice Minister Rory Stewart, commented on the hopes of delayed Brexit. However, one thing that sounds common was higher chances that favor the British departure from the EU after the present deadline of March 29.

In addition to the Brexit positive, the US President Donald Trump’s criticism of the USD and the Fed also played its role to support the pair. Reuters reported that the US President Trump again showed his resentment toward the Fed policy that (in his opinion) supports stronger USD and is not favorable to the American economy.

Looking forward, the developments concerning the Brexit will be on the top watch-list for the GBP/USD traders. However, February month British construction purchasing manager index (PMI) could also offer intermediate moves. The UK construction PMI is likely to slip towards 50.2 from 50.6 registered in January.

GBP/USD Technical Analysis

With a downward sloping trend-line resistance restricting GBP/USD upside around 1.3270, the pair needs to cross it in order to aim for 1.3320 and 1.3350.

On the downside, 1.3190 and 1.3135 can act as immediate support for the pair ahead of dragging the quote to 1.3100.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD extends slide toward 1.1800 on renewed USD strength

EUR/USD extends its daily slide and trades at a fresh weekly low 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 below 1.3550, pressured by weak UK jobs report

GBP/USD remains under heavy bearish pressure and falls toward 1.3500 on Tuesday. The UK employment data highlighted 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.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

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.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.