Sterling Gaps Up as Brexit Talks Go an Extra Mile, But Upside Capped
Action Insight Daily Report 12-14-20

Sterling Gaps Up as Brexit Talks Go an Extra Mile, But Upside Capped

Sterling opens broadly higher as Brexit trade negotiation is extending through the Sunday deadline. The Pound is taking Euro and Swiss Franc slightly higher today. Nevertheless, it should be noted that no important resistance level is broken by Sterling. Traders are just lighting their shorts. Markets are rather mixed elsewhere, with weakness seen in Dollar. But overall trading is subdued, with most pairs bounded inside Friday's range.

Technically, other than Sterling pairs, Euro is worth a watch this week too. Both EUR/USD and EUR/JPY are holding in tight range below 1.2177 and 126.74 temporary tops. Outlook stay bullish in both pairs and upside breakout could be imminent, considering the time spent on the consolidations. However, Euro is at the same time capped by weakness against commodity currencies. EUR/AUD is pressing 1.6033 low and firm break there could prompt downside acceleration. Such development could also drag EUR/CAD further lower to retest 1.5313 low. We could see which way it goes later in the week.

In Asia, currently, Nikkei is up 0.64%. Hong Kong HSI is down -0.04%. China Shanghai SSE is up 0.39%. Singapore Strait Times is up 1.39%. Japan 10-year JGB yield is up 0.004 at 0.017.

Full Report Here

Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

FOMC Preview - Fed to Update Forward Guidance on QE
CFTC Commitments of Traders - Gold Price Rebounded after Correction
CFTC Commitments of Traders - USD Weakened Further while GBP Slumped on Concerns over No-Deal Brexit
Central Bank Views | China Watch | Oil N' Gold | Special Topics

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.3134; (P) 1.3230; (R1) 1.3324; More...

GBP/USD rebounds strongly today but it's held well below 1.3529 resistance. Intraday bias is turned neutral first and another fall remains mildly in favor. On the downside, sustained break of 1.3134 should confirm another rejection by 1.3514 key resistance. Deeper decline would be seen back to 1.2675 support next. Nevertheless sustained break of 1.3539 would resume whole rise form 1.1409 and carry larger bullish implications.

Full Report Here

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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23:50 JPY Tankan Large Manufacturing Index Q4 -10 -15 -27
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23:50 JPY Tankan Non - Manufacturing Index Q4 -5 -6 -12
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