Wednesday, January 9, 2019

GBP/USD - 09 Jan 2019

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Fundamental Highlights

The British Pound continues to range between the 1.2706 support and the 1.2818 resistance as investors await any significant development related to Brexit and the US/China trade talks. Investors need to note that a Brexit development might take place today as Britain's MPs are set to resume debating the proposed Brexit plan by Theresa May. A news announcement related to the US/China trade talks is also expected given that negotiations between the two countries are set to wrap up during the day. Keep in mind that the release of a positive development surrounding Brexit will strengthen the Pound, and the release of a positive development surrounding the US/China trade talks will also strengthen the Pound as investors' sentiment will improve and lead to a surge in demand for high beta currencies. Beyond Brexit and trade negotiations between US and China, the Pound's price action for today will also be affected by the release of the US Fed Meeting Minutes.

Technical Analysis

The British Pound ranges around the three major moving averages and within the 1.2706-1.2818 price action range. Such behavior is indicative of indecision among investors which is explained by the fundamentals mentioned above. A push higher will be triggered by a break above the 1.2818 resistance paving the way for a rise towards 1.2870, while the break below the 1.2706 support will pave the way for a drop towards 1.2671.

Support: 1.2706/ 1.2671
Resistance: 1.2818 / 1.2870

Chart (H4)
GBPUSD JAN09

 
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