Monday, April 1, 2019

GBP/USD - 01 April 2019

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Fundamental Highlights

The Pound fell on Friday as PM May’s third defeat forces the Parliament to look for alternative options ahead of the 12 April new deadline, which could be extended up to May 22. The UK is meant to leave the Union with no deal, unless they take part in the European elections on May 23 and come up with a good reason for further delay. Fears of a possible hard Brexit weighed the Pound lower, despite macroeconomic data released Friday was above the market's expectations, with the Q4 GDP up to 1.4% vs 1.3% YoY. Today, traders will shift their attention to the UK Manufacturing PMI for any directional clues.

Technical Analysis

The Pound found support on Friday at 1.30 (S2) psychological round number. The bulls are attempting to break above 1.3050 to form a base around this important support, for a potential push higher towards 1.31 (R1). However, if 1.30 support is lost, then a further weakness towards 1.2960 (S3) will be a likely scenario.

Support: 1.3050 / 1.30 / 1.2960
Resistance: 1.31 / 1.3150 / 1.32

Chart (H4)