Tuesday, October 9, 2018

GBP/USD - 09 October 2018

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Fundamental Highlights

The British Pound ended the day around the same place it started the week as investors find themselves lacking a clear bias towards the outcome of the Brexit deal between the U.K and the EU. Past events and current news chatter are not aiding investors in developing an opinion on the British Pound as the outcome of Brexit can go either way. Speculative bets related to the Pound might not be in play, but the market will have the U.S Dollar to worry about as U.S Treasury Yields rise and traders continue to price in further rate hikes from the Federal Reserve.

Technical Analysis

Technically, the bias remains bullish given that the Pound is maintaining its stance above the 1.30661 support level. Moreover, the pair trades above all three major moving averages confirming the bullish bias. Given the uncertainty in the market, things might shift instantly and a break below the 1.30247 support level will confirm a change in the short term outlook of the pair. Keep in mind that if the pair breaks below the 1.30247 that will also mean a break below all three major moving averages.

Support: 1.30661 1.30247
Resistance: 1.31811 1.32179

Chart (H4)
GBPUSD

 
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