The financial markets continue to trade risk-off sentiment after the Brexit failed to pass the parliament vote. During the weekend, the Brexit remained in the limelight and would remain a significant driver of this pair movement at the start of this week.

UK Parliament sat on Saturday and passed an amendment that required PM Boris Johnson to ask for 3rd extension for Brexit. Johnson was forced to write an extension letter to European Union after the majority of Parliament voted in favor of an amendment against his revised proposed Brexit deal.

Economic Calendar – Eelection Day in Canada

 


BTC/USD – Daily Analysis

Bitcoin has soared over the $8,000 price mark during the Asian session despite showing symptoms of recovery in previous hours. The world’s biggest cryptocurrency place an intraday low of $7,950, before making its way to its current trading price of around $8,216. BTC is recording a surge of 3.73% in the past 24 hours.

A couple of days ago, the 18th million BTC was mined, devising the world with just 3 million specimens to mine, which was sufficient cause for crypto-skeptic Peter Schiff to allege that Bitcoin’s fate “looks horrible” and that it is merely a subject of time for the most common cryptocurrency to undergo a “rapid drop down to $4,000 or lower!”


BTC/USD – Daily Technical Levels

Support    Resistance 

7,822.83     8,079.36

7,694.36     8,207.42

7,437.83     8,463.95

Pivot Point 7,950.89

BTC/USD – Daily Forecast

The BTCUSD has violated the sideways range during the weekend. The pair were facing substantial resistance at 8120 levels, which has now been violated. For now, the same level is likely to work as a support, and we may see continuation pf a bullish trend above this level. 

On the upper side, the resistance is at 8400. The RSI and MACD are holding in the buy zone, suggesting chances of further buying in the BTCUSD.

 


EUR/USD –  Resistance Become Support 

EUR/USD was closed at 1.11689 after placing a high of 1.11702 and low of 1.11146. The overall trend for EUR/USD remained Bullish that day.

At 13:00 GMT, the European Central Bank issued a Current Account figure for September as 26.6B against 21.3B of expectations and supported Euro.

On Friday, EUR/USD reached the highest level since late August, the Supportive European macroeconomic data and weak US Dollar caused a jump in the prices of EUR/USD. The primary focus on Friday for most currency pairs was on Brexit Vote. The market reacted ahead of the UK parliament vote on Brexit and gave a robust Bullish trend to Euro currency.

After the UK and EU reached on Brexit deal on Thursday, the pair EUR/USD showed an upward movement trend, and the same trend was followed on Friday. 

The pair could continue to move in upward direction if the ECB decided to look away from monetary policy easing. The quantitative easing in the previous meetings by ECB President Mario Draghi already has faced opposition, and there are chances that ECB holds its rates in the next meeting because of the decline in global threats after a partial trade deal agreement between US-China to end the prevailing trade war.

EUR/USD – Daily Technical Levels

Support Resistance 

1.1133       1.1192

1.1094      1.1212

1.1035      1.1271

Pivot Point 1.1153

EUR/USD – Daily Forecast

The EUR/USD has closed a bullish engulfing candle on the daily timeframe, which is suggesting strong bullish bias among traders. The bullish bias may lead the EUR/USD pair towards 1,1227 area soon. While the support stays at 1.1110.

 


GBP/USD – Sterling On Fire Amid Brexit Updates 

The GBP/USD was closed at 1.29695 after placing a high of 1.29727 and a low of 1.28892. The Overall trend for GBP/USD remained Bullish that day. Brexit remained the limelight last week and would remain a significant driver of this pair movement at the start of this week.

UK Parliament sat on Saturday and passed an amendment that required PM Boris Johnson to ask for 3rd extension for Brexit. Johnson was forced to write an extension letter to European Union after the majority of Parliament voted in favor of an amendment against his revised proposed Brexit deal.

Johnson, on Saturday, sends an unsigned letter requesting an extension from the European Union, followed by his signed letter saying that a delay would be a mistake and that he was not in favor of the expansion.

It is now up to European Union to accept or reject his request for an extension. EU Council President Donald Tusks said that he has received the request for extension and would discuss it with EU Members to further respond. 

If the European Union rejects this request, then there would be pressure on the UK Parliament to accept the proposed deal of PM Boris Johnson. For now, the UK government would work to get its legislation through parliament on Monday so that it can seek a formal approval in time to exit from Europe on said deadline I,e October 31.

GBP/USD is highly sensitive to Brexit Talks and would start its new week with the headline of the Brexit amendment asked on Saturday.


GBP/USD – Daily Technical Levels

Support Resistance 

1.2876      1.3025

1.2784      1.3081

1.2635      1.3229

Pivot Point 1.2932

GBP/USD – Daily Forecast

The GBP/USD is trading at 1.2900 area after testing 1.2975 over Brexit deal between the US and EU. But the Brexit deal couldn’t pass the Parliament vote and got rejected. The Cable is now facing immediate resistance at 1.2920, along with a support level of 1.2850. Violation of this range may help us determine the next trend in the GBP/USD.

All the best for today. 

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