Friday, May 17, 2019

GBP/USD - 17 May 2019

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Fundamental Highlights

The British Pound closes negatively for the fourth consecutive day as uncertainty in the cross-party Brexit talks prevails. Traders are still pessimistic of the outcome when PM May will bring the Brexit bill to Parliament for the final vote. Furthermore, the uncertainty of PM May’s future adds even more pressure on the Cable. However, ex-Foreign Minister Boris Johnson is interested to replace May as the new British PM via Tories, once she steps down. Giving the lackluster macroeconomic calendar, traders will remain concentrated on the cross-party talks to figure out the market sentiment.

Technical Analysis

The Pound kept falling yesterday until price found support just around 1.2780 key level. Failure to hold this level, would push the Cable lower towards another key support area 1.27. The bulls will need to push price above 1.28 to gather momentum for a possible stronger counter-trend move towards 1.2850.

Support: 1.2780 / 1.27
Resistance: 1.2850 / 1.2880

Chart (H4)
GBPUSD