GBP slips on PM May's comments on Brexit

January 9, 2017

The British pound came under pressure in early Asian trading this morning as the UK's Prime Minister, Theresa May said that Britain would definitively break away from the EU, in a televised interview even as the country is yet to begin any negotiations with the European Union. The British pound was also hit by Friday's U.S. jobs report which sent the cable tumbling lower and giving up the strong gains made just days before. The UK's Supreme Court is also likely to give its judgment on whether the UK government should seek parliamentary approval before triggering Article 50 talks. On the economic front, the calendar is light today with mostly second tier data on the cards.

EURUSD intra-daily analysis

EURUSD (1.0524): EURUSD posted a reversal off 1.0600 price level on Friday to give up half the gains made the day before. Price remains trading within 1.0600 and 1.0500 levels with further bias likely to extend on a breakout from these levels. On the 4-hour chart price action remains fairly balanced although the current declines near 1.0533 could trigger near-term declines towards 1.0400 if the bearish momentum gains pace. The weekly chart on EURUSD shows prices being repeatedly rejected near the lows of 1.0400 which could indicate a short-term potential reversal to the upside.

GBPUSD intra-day analysis

GBPUSD (1.2194): GBPUSD has gapped lower on today's open with the price now seen testing 1.2200 support level. The follow-through from Friday's bearish price action could indicate renewed declines in GBPUSD. On the 4-hour chart, a session close below 1.2200 could signal further weakness to come although the price could still retest 1.2287 resistance level. Mind the Stochastics on the 4-hour chart which could post a bullish reversal on the divergence that is currently forming.

USDJPY intra-day analysis

USDJPY (117.47): USDJPY has pushed higher once again after falling below the support level at 116.00 last week. Price action remains within grasp of 118.00 resistance level which could be tested in the near term. Further gains can be seen coming only on a breakout above 118.00. The daily chart's Stochastics shows the potential bearish divergence that could be formed with the oscillator failing to confirm the highs in price. Still, further validation is required. On the 4-hour chart, price action remains bullish as resistance at 118.50 is clearly seen with price turning flat near this level.

Publication source
Orbex information  Orbex reviews

January 17, 2017
ECB policy was focused on avoiding deflation trap
Asian stock markets were mixed, with Japan and ASX heading south amid reports that U.K. Prime Minister May will announce plans for a hard Brexit at today’s keynote speech. Yen strength is also continuing to put pressure on the Japanese markets...
January 17, 2017
Trump's inauguration and May's speech to shape up the markets this week
Markets started the week with no sharp changes and lower trading volumes, due to the Martin Luther King Day in the US, ahead of the crucial monetary policy decisions of the ECB and BoC...
January 17, 2017
Yen strengthens as markets jittery ahead of May's press conference
The U.S. dollar was trading weak yesterday in a holiday thin trading session. The Japanese yen strengthened strongly in the early hours today as investors turn cautious ahead of the British PM...

Trade360 Rating
Tickmill Rating
Larson&Holz IT Ltd Rating
 FXTM Rating
FIBO Group Rating
FxPro Rating

OptionsXO Rating
Binary Brokerz Rating
OptionBit Rating
OptionFair Rating
OptionRally Rating
365BinaryOption Rating