Monday, October 8, 2018

GBP/USD - 08 October 2018

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Fundamental Highlights

The Pound continues to push higher as investors digest last week's comments from Theresa May in which she signaled her intentions to work towards a soft Brexit. Prime Minister May suggested an all-UK customs union with the EU if her proposed Chequers plan fails in the negotiations. The Pound's rise was also aided by the unchanged U.S Dollar which was unmoved due to a mixed NFP report. U.S Dollar speculators are having difficulties reaching a consensus following Friday's NFP report since the Non-farm Payrolls figure printed lower than expected, while the Unemployment Rate printed better.

Technical Analysis

The Pound remains above the 1.30661 support level supported by all three major moving averages which continue to point higher and maintain their stance below prices. As long as sentiment remains positive, the Pound will continue to rise all the way towards 1.31811. However, if sentiment shifted and the Pound broke below 1.30661 then a drop towards 1.29950 is expected.

Support: 1.30661 1.29950
Resistance: 1.31811 1.32179

Chart (H4)
GBPUSD

 
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