Friday, May 3, 2019

GBP/USD - 03 May 2019

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Fundamental Highlights

The Pound reversed and fell yesterday as BoE’s Governor Carney couldn’t please the Cable buyers and derailed investors’ optimism after showing concerns over Brexit. The broad US Dollar strength added to the Sterling’s weakness on the back of an upbeat US factory order data. Additionally, the cross-party Brexit talks still have a long way to go as neither Tories nor Labour wish to give up on their demand. Looking forward, the UK will release Services PMI, a key component of the UK GDP, but the main focus will be on the US employment data.

Technical Analysis

The Pound fell below 1.3050 during yesterday’s session but it’s still holding above the 1.30 key support. Traders need to break above 1.3085 which is just above the 200-day moving average (yellow line) to completely shift the market sentiment towards the bulls’ side. However, if the bears manage to break below 1.30, they will regain control and take price much lower.

Support: 1.3010 / 1.2980
Resistance: 1.3050 / 1.3085

Chart (H4)
GBPUSD