Friday, May 10, 2019

GBP/USD - 10 May 2019

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Fundamental Highlights

The Pound closed relatively unchanged on Thursday amid expectations that Brexit talks between the ruling Conservative and opposition Labour parties are unlikely to result in any meaningful progress to break the deadlock. Market sentiment remains neutral, as market participants are still waiting for a possible Brexit solution. Moreover, US – China trade negotiations have extended until today, so traders will now turn their focus towards the economic calendar, as the UK GDP and US CPI will take the spotlight.

Technical Analysis

The Pound traded over and under the psychological round number 1.30 until it closed slightly below it. The pair is trading back below both the 50 and 200-day moving averages shifting the sentiment towards the bears. The bulls need to retest the moving averages and try to break above them to regain control of the market sentiment. However, a close below 1.30 could likely weaken the Cable towards the April lows.

Support: 1.30 / 1.2975 / 1.2955
Resistance: 1.3025 / 1.3050

Chart (H4)
GBPUSD