Monday, July 8, 2019

GBP/USD - 08 July 2019

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Fundamental Highlights

The Cable dropped heavily on Friday after the US NFP data decreased the chances of a rate cut policy from the US Federal Reserve. Also, uncertainty surrounding the Brexit added further weakness into the pair. Former Brexit Chief, Philip Rycroft, said that everyone should worry about no deal as “it is an unprecedented situation” and “the biggest exercise across government over the last few decades”. On the other hand, Rory Stewart, a Tory MP, has said he would help organize an “alternative parliament” in order to stop the new MP to bypass a no-deal Brexit. Today’s lack of macroeconomic data will shift the focus to any updates regarding Brexit.

Technical Analysis

The Pound briefly broke below the psychological support, 1.25 during Friday’s session, as the bears were fully in control. The bulls will need to protect this level with everything they have got, as any successful break below 1.25, will open doors for much further weakness on this pair. The buyers need to break back above 1.2560 to regain short-term control.

Support: 1.2506 / 1.2480
Resistance: 1.2560 / 1.26

Chart (H4)
GBPUSD