Wednesday, September 11, 2019

GBP/USD

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Fundamental Highlights


The Pound bulls were subdued during yesterday’s session despite a very positive UK employment data, as the unemployment rate increased by 3.8% and 4.0% excluding and including bonus respectively. Moreover, BoE Governor, Mark Carney, made some hawkish comments, which also kept Sterling in the bullish territory after saying that “the core of the financial system in the UK is ready for Brexit whatever form it takes." However, the UK Parliament enacted a law to block a no-deal Brexit, before the Parliament got suspended until October 14. British PM Johnson also said that the government is working very hard to get a deal with the EU but noted that they will come out without a deal if it's "absolutely necessary." Looking forward, the focus will remain surrounding any possible Brexit development, as the UK will not be releasing any relevant data today.

Technical Analysis

The Sterling bulls retested yesterday highs, 1.2380, but were once again rejected by the bears. However, the demand on the British currency remains high, as price stayed above the immediate support, 1.2330, despite the pullback. If the bullish momentum remains strong, the buyers will be looking to retest 1.24 and possibly break higher. On the other hand, if the bears were able to break below 1.2330, the Cable could extend its losses towards 1.23.

Support: 1.2330 / 1.23
Resistance: 1.24 / 1.2450

Chart (H4)
GBPUSD