British pound falls sharply lower over emergency Brexit talks

Sterling slumps

The British pound currency moved sharply lower against a basket of top currencies this week, as reports suggested that EU officials had called for emergency talks with UK Brexit negotiators. Market participants also reacted to the news that British Prime Minister Boris Johnson was considering breaking parts of the Brexit Withdrawl Agreement. Sterling traded below the 1.3000 level and eventually slumped towards the 1.2700 level as financial markets awaited the latest news from the emergency Brexit talks. The British pound also suffered heavy losses against the Japanese yen and the euro currency this week.

• The GBPUSD pair is only bearish while trading below the 1.3170 level, key support is found at the 1.2770 and 1.2500 levels.
• The GBPUSD pair is bullish while trading above the 1.3170 level, buyers may test towards the 1.3280 and 1.3350 resistance levels.

Euro surges

The euro currency posted strong gains against the US dollar and the British pound this week after the European Central Bank forecasted higher inflation for next year. The ECB kept interest rates unchanged and noted that inflation in the eurozone was expected to rise more than the central bank had been anticipating in 2021. ECB President Christine Lagarde also said that the centre was currently not concerned about the strength of the euro currency on the foreign exchange market. The EURUSD pair traded above the 1.1900 level, following the bullish comments from the September European Central Bank policy meeting.

• The EURUSD pair is only bearish while trading below the 1.1790 level, key support is found at the 1.1750 and 1.1640 levels.
• The EURUSD pair is bullish while trading above the 1.1790 level, buyers may test towards the 1.1960 and 1.2100 resistance levels.

Bitcoin recovery

Bitcoin staged a cautious recovery this week, as sellers failed to hold the number one cryptocurrency below the psychological $10,000 level. Bitcoin briefly fell towards the $9,800 support level before recovering higher alongside the US dollar index and the S&P 500 index. Data showed that long-term Bitcoin holders were once again purchasing at bargain levels, and the number of investors holding one whole Bitcoin is now at an all-time high. Ethereum attempted to recover alongside its nearest rival, Bitcoin, as the second-largest cryptocurrency by market capitalization edged back towards the technically important $365.00 resistance level. 

• The BTCUSD  pair is only bearish while trading below the $10,500 level, key support is found at the $9,800 and $9,600 levels.
• If the BTCUSD pair trades above the $10,500 level, buyers may test towards the $11,100 and $12,000 resistance levels.

Indices recover

Global indices staged a solid rebound this week, after recent heavy selling in stocks had caused investors to fear that a market crash may be on the horizon. The S&P 500, Nasdaq, German Dax, and FTSE 100 all staged strong gains this week, following last week massive two-day decline. Volatility in the financial markets has been on the rise lately due to large-scale profit taking, technical selling, and overall fears about the result of the upcoming US election. Despite the recovery in global indices, WTI oil and Brent oil suffered heavy losses this week, and are already trading in double-digit negative territory for the month so far.

• XAUUSD is only bullish while trading above the $1,920 level, key resistance is found at the $1,900 and $2,020 levels.
• XAUUSD is only bearish while trading below the $1,920 level, key support is located at the $1,880 and $1,820 levels.