- EU confirms Brexit deadline extension from March 29 making the UK parliament a crucial entity to direct the future dates of departure.
- The GBP/USD pair bounces off the 1.3060/65 support-line but still has to cross 1.3180 and 1.3230 in order to justify its strength.
The GBP/USD pair trades near 1.3120 at the start of Asian sessions on Friday. The quote recently witnessed pullback from 1.3000 round-figure and is holding above 1.3100 off-late as latest reports say the EU proposes two-factor Brexit deadline extension plan. No major data is scheduled for release from the Britain while there are only few statistics to watch from the US, leaving highlights on Brexit.
At the end of much drama concerning the Brexit deadline at the EU summit, the regional leaders finally agree to a two-factor approach that offers an unconditional Brexit delay until April 12 and helps the British Pound (GBP) to recover some of the latest losses. As per the draft proposal, the EU is ready to offer a Brexit extension till April 12 by then the PM Theresa May has to acquire parliament support for her deal in order to remain in the region till May 22. If Mrs. May fails to gain House of Commons’ support for her plan, April 12 is the last day for the British economy as the regional member.
The GBP declined most among G-10 currencies on Thursday as the EU lawmakers continued to struggle over the final date to give to the UK for leaving the regional boundary as opted before two years. Looses were also mounted as the US initial jobless claims and Philadelphia Fed manufacturing survey flashed welcome numbers. It should also be noted that the Bank of England (BOE) left its monetary policy unchanged, as expected, while giving higher importance to Brexit for directing future moves.
Traders have fewer details/events to watch over during rest of the day that continues to highlight Brexit headlines for near-term trade direction. However, US Markit PMI and existing home sales could offer intermediate moves.
The US Markit preliminary manufacturing purchasing manager index (PMI) for the current month may rise to 53.6 from 53.00 prior whereas services PMI might not deviate from its 56.0 level.
Further, the composite PMI could weaken to 55.2 from 55.5 while existing home sales may increase to 5.10M during February from 4.94M registered in January month.
GBP/USD Technical Analysis
Not only eleven-week old ascending trend-line and 50-day simple moving average (SMA) around 1.3060/65 but 1.3000 and 200-day SMA figure of 1.2980 could also limit the GBP/USD pair’s downside.
Alternatively, 1.3180, 1.3230 and 1.3280 are likely nearby resistances that the quote should cross in order to aim for 1.3320 and 1.3375/80.
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.