Wednesday, September 5, 2018

GBP/USD - 05 September 2018


Fundamental Highlights

The Pound ends Tuesday's trading session slightly lower as U.K's Construction PMI figure prints worse than expected at 52.9 relative to the 54.9 consensus reading. The Pound did not drop sharply following the economic release as investors are not putting much emphasis on such events at the moment. The focus is mainly and fully on events related to the Brexit negotiations between the U.K and the EU. In general, the current state of uncertainty revolving in the market will keep pushing the Pound lower up until a positive development arises.

Technical Analysis

After clearly rejecting the 13-period moving average, the pair fell and is currently approaching a key support level at 1.27984. Yesterday, the pair fell towards that support level but was not able to break it. For today, the pair will either form a double bottom and reject the 1.27984 level or break the 1.27984 level and expose the 1.27471 level.

Support: 1.27984 1.27471
Resistance: 1.28756 1.29024

Chart (H4)