Thursday, May 9, 2019

GBP/USD - 09 May 2019

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Fundamental Highlights

The Pound fell briefly below the 1.30 handle during Wednesday’s session but managed to end the day slightly above it. Cross-party Brexit talks continued to remain unresolved as neither Tories nor Labours are ready to compromise their demands, keeping the market sentiment tilted to the bears’ side. Earlier today, Bloomberg reported that the Tories will back down and let PM May’s position unchanged despite growing calls from backbenchers to remove her from authority, this gave traders some kind of a hope and possibly set the tone for the day ahead. The UK have no macroeconomic figures scheduled for today, so traders as usual will turn their attention to any Brexit development for a possible catalyst.

Technical Analysis

The Pound bulls found support at 1.30 psychological round number and pushed the Cable higher in an attempt to retest 1.3050 (R1). Failure to break above that level, the bears will take over and in their turn push the Sterling lower towards 1.30 (S1) and possibly 1.2975 (S2). Market sentiment is currently back to neutral after it briefly turned bullish at the beginning of this month.

Support: 1.30 / 1.2975
Resistance: 1.3050 / 1.3080

Chart (H4)
GBPUSD