something interesting

<  BACK TO Market Analysis

GBP/USD fades

GBP_USD_FOREX_FXPIG

•  News that DUP is considering to support government’s deal lifts the British Pound.
•  The upside remains capped ahead of the final Brexit vote on Article 50 extension.

The GBP/USD pair managed to recover a major part of the early lost ground and jumped back above the 1.3300 handle in the last hour, albeit quickly retreated few pips thereafter.

Having touched an intraday low level of 1.3239, the pair managed to regain some traction and the uptick picked up the pace during the early European session in reaction to unconfirmed news that the DUP is considering to support the government's deal.

The uptick, however, lacked any strong bullish conviction as investors preferred to wait for this week's final Brexit vote on an extension of the March 29 deadline. The UK Parliament on Wednesday voted to reject the idea to leave the European Union without a trade deal and would vote again on Thursday for an extension of Article 50.

Meanwhile, questions on whether there would be a short extension or a long extension held investors from placing any aggressive bullish bets, which coupled with a modest US Dollar uptick, supported by a strong rebound in the US Treasury bond yields, further collaborated towards keeping a lid on additional gains.

Hence, it would be prudent to wait for a strong follow-through buying before traders start positioning for a fresh leg of an up-move amid absent relevant major market-moving economic releases either from the UK or the US.

Technical levels to watch

Yohay Elam, FXStreet's own Analyst writes, “1.3365 was the February high and remains relevant. 1.3388 was the fresh peak seen on Wednesday. The next levels date to June 2018. 1.3485 capped cable in June and 1.3625 held it down in May. The next levels are 1.3710 and 1.3920.”

“Some support awaits at 1.3240 which was the daily low, and it is followed by levels such as 1.3185, 1.3150, and 1.3110 that were relevant before the recent volatility sent GBP/USD all over them. The most significant downside support is 1.2960 which was a double-bottom,” he added further.

Source: fxstreet

•  News that DUP is considering to support government’s deal lifts the British Pound.
•  The upside remains capped ahead of the final Brexit vote on Article 50 extension.

The GBP/USD pair managed to recover a major part of the early lost ground and jumped back above the 1.3300 handle in the last hour, albeit quickly retreated few pips thereafter.

Having touched an intraday low level of 1.3239, the pair managed to regain some traction and the uptick picked up the pace during the early European session in reaction to unconfirmed news that the DUP is considering to support the government's deal.

The uptick, however, lacked any strong bullish conviction as investors preferred to wait for this week's final Brexit vote on an extension of the March 29 deadline. The UK Parliament on Wednesday voted to reject the idea to leave the European Union without a trade deal and would vote again on Thursday for an extension of Article 50.

Meanwhile, questions on whether there would be a short extension or a long extension held investors from placing any aggressive bullish bets, which coupled with a modest US Dollar uptick, supported by a strong rebound in the US Treasury bond yields, further collaborated towards keeping a lid on additional gains.

Hence, it would be prudent to wait for a strong follow-through buying before traders start positioning for a fresh leg of an up-move amid absent relevant major market-moving economic releases either from the UK or the US.

Technical levels to watch

Yohay Elam, FXStreet's own Analyst writes, “1.3365 was the February high and remains relevant. 1.3388 was the fresh peak seen on Wednesday. The next levels date to June 2018. 1.3485 capped cable in June and 1.3625 held it down in May. The next levels are 1.3710 and 1.3920.”

“Some support awaits at 1.3240 which was the daily low, and it is followed by levels such as 1.3185, 1.3150, and 1.3110 that were relevant before the recent volatility sent GBP/USD all over them. The most significant downside support is 1.2960 which was a double-bottom,” he added further.

Source: fxstreet

lastest Articles

Market Analysis
GBP/USD once again finds support near 1.2100 mark, turns neutral post-UK services PMI
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD Technical Analysis: The outlook remains bearish while below the 55-day SMA near 1.1230
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: China strikes back with yuan devaluation, yen surges, commodity currencies crash
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week ahead – Focus shifts east
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Fed-fueled dollar dominates, GBP/USD fears BOE's Super Thursday, and more NFP hints eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY sits near 2-month tops, comfortably above 109.00 handle
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BoE and global PMIs amongst market movers today
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY: a test of 109.00 stays on the table
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Fed: Market currently fully pricing a 25bps cut – Deutsche Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: GBP/USD, AUD/USD, NZD/USD -31.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold holds steady near $1425 area, focus remains on FOMC/US-China trade talks
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BoJ: No fireworks offered
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, USD/JPY - 30.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/GBP climbs to 2-week highs around 0.9020
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BoJ to move towards strengthening its forward guidance
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: GBP/USD, AUD/USD, NZD/USD -29.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week Ahead
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD Technical Analysis: Looks neutral near term. A drop below 1.1100 cannot be ruled out
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
UK: Tough electoral rhetoric on Brexit - Rabobank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Fed: Scope for disappointment
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD Technical Analysis: Holding on above 1.1100 ahead of the ECB event
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold steadily climbs to session tops, back closer to $1430 area
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB and German IFO amongst market movers today
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold steadily climbs to session tops, around $1425 level
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP: Strength to be faded as we get closer to general election - ING
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD drops to 2-month lows near 1.1120 on poor PMIs
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US Dollar Index Technical Analysis: Extra gains could now test 97.60 ahead of 97.80
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 23.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil: Talk of 'Hidden' Iranian barrels, demand worries preventing jump higher - TDS
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD refreshes session lows, back below 1.2500 handle
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 22.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD Forecast: Upside remains capped by the 21-day SMA around 1.1280
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Dollar mixed and Stocks Fall as markets brace for more global easing
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP: Guided by the UK politics
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY: Back under pressure
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 18.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold technical analysis: Bears challenge a key pivotal support near $1400 mark
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 17.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY recovers from lows, back around 121.40
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Canada: Housing data in focus
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 15.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR: ECB-related uncertainty lingers
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD Canadian Dollar Higher as Dollar Faced Fed Cut Pressure
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD: Less of a safe haven now - ING
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 12.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BOE’s Vlieghe: BOE may need to raise rates if inflation expectations are deanchored by a no-deal Brexit
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold technical analysis: Set-up remains in favour of bullish traders, dip-buying to help the downside
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD - 11.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Bank Of England Sees Significant Market Volatility In Disorderly Brexit
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold steadily climbs to session tops, farther beyond $1400 handle
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 08.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: USD looking strong, Turkish lira plunges, new trade tensions arise
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
King Dollar’s reign could end on Powell’s testimony and trade war progress
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD at the crossroads - ING
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil: Prices likely to rebound this year – Danske Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US: Payrolls likely to increase 150k in June - TDS
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
RBA: More rate cuts to come? - Westpac
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB’s Lane: No comments on monetary policy
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold slips back closer to overnight swing low, below $1415 level
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD Technical Analysis: Further downside should test the 100-day SMA at 1.1259
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
RBA delivers consecutive cuts - TDS
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, NZD/USD, USD/JPY - 02.07.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD Canadian Dollar Rises on Rate Divergence With Fed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
G20 meeting: Trump and Xi meeting in focus - Westpac
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY: Market stays immediately offered
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD struggles below 1.3100 handle, fresh multi-month lows
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold climbs to weekly tops, around $1338 level
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 13.06.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
UK PM Candidate Javid: My absolute priority is to deliver a Brexit deal
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US: Damage already done from the Mexico tariff threat? – ABN AMRO
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY -12.06.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Preview: Draghi’s speech at ECB conference on CESEE in Frankfurt
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
OPEC+ and global supply risks to put a floor in crude markets - TDS
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold slips to 1-week low, below $1325 level amid fading safe-haven demand
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY -11.06.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Obsessed
This Time It's Different
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EU Commissioner Moscovici: EU still has risks to monitor, including Brexit and Italy’s finances
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold drops to multi-day lows, around $1325 level
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 10.06.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD Canadian Dollar Higher After US and Canadian Jobs Report
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB's Vasiliauskas: Inflation outlook is 'not bad'
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BOJ: Expect further easing in September – JP Morgan
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD flirting with daily lows near 1.1260
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB and Eurozone GDP amongst market movers today – Danske Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD: Downtrend eroded? - Commerzbank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOMC: July meeting priced in for 21bps of cuts – Deutsche Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD firmer, approaches 1.1300 ahead of US ADP
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB: Tweak in policy rate forward guidance?
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD: Further selling? – Danske Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold jumps to over 3-month tops, around $1330 area
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/GBP could move towards 0.9 – Danske Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Market Death by Tariffs; Safe-Havens Reign Supreme
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD holds steady near 1.1135 amid falling German yields
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 31.05.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold technical analysis: Bulls challenge 100-hour SMA/38.2% Fibo. confluence resistance
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BoE's Ramsden: Little more pessimistic about the GDP growth that the latest BoE forecasts
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 30.05.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY climbs to 1-week tops, 110.00 mark back on sight
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD Technical Analysis: Rising bets for another test of 2019 lows near 1.1100
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - 29.05.2019
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613