Forexlive Americas FX news wrap: GBP squeezes higher into the weekend

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Markets:

  • S&P 500 closes near unchanged at 2596.26
  • Gold rises $1.85 or 0.14% at $1288.50
  • WTI crude oil is trading -$-0.88 or 1.67% at  $51.71

The day today saw the GBP squeeze higher into the weekend for a change (there is often weekend Brexit anxiety).  In fact, the GBP was the strongest of the major currencies today (see charts above).  There was chatter about extending Brexit past the March 29th date. That – and favorable technicals – helped to move the GBPUSD to a high for the day, week and month of January (the high reached 1.2865).  That high was the highest level since November 23rd, and got close to the 50% retracement of the move down from September high at 1.2875.  If the momentum continues into the new week, the 100 day MA at 1.28914 is not that far away. The price has not traded above that MA since November 15th.A move above would be more bullish. 

The GBPUSD rose by 0.77% on the day, but the biggest gain for the GBP today was against the EUR. The GBP gained 1.02% vs the EUR today.  Technically, the pair has been trading in a 0.8921 to 0.9086 range over the last 5 trading weeks. Today, the price tumbled from near the high of that range, all the way to the floor.   The price stalled right near the lower extreme.  Leaving a potential break lower, for the new week.  Be aware. the 0.8926 will help define the next bias for the pair in the new week.  

The USDCAD today fell early, but then shot higher in the NA session. The bounce was helped by holding just above the Wednesday low at 1.1380 and also above the 100 day MA at 1.31684. The run higher moved above the 100 hour MA at 1.32458 in the North American session (and stayed above), reaching a high for the day at 1.3278 in the last few hours of trading.  The price had not been above the 100 hour MA since January 3rd (5 days down to the Wednesday low).  The move from January 3rd high took the price from about 1.3650 to the lows this week at 1.3180. The question next week is “Can the 100 hour MA hold and the corrective move continue?”  

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