GBP weaker as British PM talks Brexit trigger

3 October, 2016

The British pound opened today on a weaker note following the British PM Theresa May confirming over the weekend that the UK will start the negotiations to leave the EU by March 2017. The news put to rest the rumors about a delayed process and now is likely to see the UK conclude its pull out from the EU by as early as March 2019. The GBP gapped down lower across the board at today's open.

GBPUSD Daily Analysis

GBPUSD (1.1217): GBPUSD closed Friday with a spinning bottom candlestick pattern with today's lower open. However, prices are seen reclaiming the losses, with GBPUSD attempting to post steady gains. On the 4-hour chart, after the previous doji candlestick was formed, price action in GBPUSD closed bulish. The Stochastics on 4-hour chart is also attempting to post a higher low against the lower low in price. This could indicate a near term correction to the upside, but 1.3000 resistance is likely to cap the gains for now. Further downside can be expected on a daily close below 1.2921, in which case, the round number support at 1.2900 will be most likely to hold the declines.

XAUUSD Daily Analysis

XAUUSD (1315.35): Gold prices briefly touched 1315 support on Friday but today's price action could see prices continuing to hover around the 1315 support. Gold prices are seen testing the major support level of 1315 - 1300 which marks the support off the descending triangle pattern on the daily chart. A breakdown below 1300 could spell further weakness in the precious metal. On the 4-hour chart, the minor support at 1314 - 1312 remains critical as a breakdown below this support could trigger further downside to 1306 - 1300. In the event of support holding out at the current levels, expect a rebound in gold prices back to 1327.50.

EURGBP Daily Analysis

EURGBP (0.8679): EURGBP broke above the resistance level of 0.8671 and tested the previous highest low at 0.8690. As long as this price level is not breached, we could expect some downside in prices with 0.8600 support to the downside a likely target. Despite the initial knee jerk reaction to the Brexit news, economic data will also play a role as UK manufacturing PMI for September will be released today.


Source link  
Euro stays weak

Monetary policy was left unchanged at yesterday's ECB meeting as widely expected, but ECB President Mario Draghi...

Dollar stays muted to Trump's tax plans

Donald Trump unveiled the much anticipated tax reforms, most of which was already priced...

Safe havens retreat as risk appetite gains

The Japanese yen and gold retreated as investors' risk appetite increased...


Coming to a cross roads

The rally in EURUSD in response to the results of the first round of the French Presidential elections...

Traders turn cautious ahead of elections

With the French elections just around the corner, investors turned attention to the high risk...

Kiwi flies as inflation highest

In a surprise beat on the estimates, New Zealand's first quarter inflation rate nudged...


British pound rallies

In a rather uneventful day, the surprise announcement by the British Prime Minister...

Gold and yen maintain gains. BoC meeting eyed

The U.S. dollar remained mixed but was seen trading weaker against the safe haven gold...

Markets cautious on geo-political developments

The currency markets opened today on a cautious note...

  


Share: