Tuesday, April 16, 2019

GBP/USD - 16 April 2019

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Fundamental Highlights

The Pound lost most of its gains yesterday as price pulled back from the highs after it failed to surpass a major trend line resistance. With the Brexit headlines taking a break due to the Easter recess at the British parliament, traders turned their focus to the risk sentiments and data-points. Today, the focus will be on the ILO Unemployment Rate and Average Earnings from the UK and Industrial Production from the US. A better or worse employment data could be the catalyst to break the Sterling from this recent consolidation zone.

Technical Analysis

The Pound got rejected once again from the downtrend line (purple line), as price is still consolidating in a very tight range. Price has no directional bias as 1.3125 and 1.3065 (S1) will be the levels to watch, a break to either side will bring volatility and clarity back to this market.

Support: 1.3065 / 1.3020
Resistance: 1.31 / 1.3130

Chart (H4)

GBPUSD