Friday, November 16, 2018

GBP/USD - 16 November 2018

Tags

Fundamental Highlights

The British Pound tumbles as key UK officials resign signaling their frustration and discontent with the proposed Brexit deal agreed upon by Prime Minister Theresa May and the European Union. The most notable of the protesters was Dominic Raab, the UK’s Brexit Secretary who resigned while pointing out that the draft agreement included “fatal flaws” and that the EU are “blackmailing” Britain to an extent where the nation should rather risk a no-deal Brexit. For today, the focus will remain on any developments related to Brexit as it is clearly the main driver of the pair’s performance. Going into the weekend, traders need to be aware that we are at a pivotal stage of the Brexit deal and a lot of things may happen at anytime even during the weekend, hence, traders should pick their traders very wisely if they were to hold onto a British Pound position through the closed market.

Technical Analysis

The Pound most recently broke below the 1.2806 support exposing the next key support level at 1.2729. The bias remains bearish on the pair given the negativity surrounding the Brexit deal. However, traders need to note that if prices break back above the 1.2806 mark then prices may rise towards the 13-period moving average before continuing to drop later on.

Support: 1.2806 / 1.2729
Resistance: 1.2937 / 1.3047

Chart (H4)
GBPUSD