Friday, January 25, 2019

GBP/USD - 25 January 2019

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Fundamental Highlights

The Pound breaks past 1.3100 as optimism regarding Brexit helps increase demand for the British currency. Investors are now more optimistic about Brexit after The Sun reported that the Northern Ireland's Democratic Unionist Party have “privately decided to back up Theresa May's Brexit plan” in efforts to dim the prospects of a no-deal Brexit. For today, the focus will remain on Brexit and investors need to continuously watch for any news release related to this topic.

Technical Analysis

The Pound continues to break above resistance levels and rises for a third day in a row. Most recently, the Pound managed to break above the 1.3102 resistance which sets the stage for a rise towards 1.3152. Note that momentum remains bullish as prices are trading well above all the three major moving averages.

Support: 1.3085/ 1.2964
Resistance: 1.3102 / 1.3152

Chart (H4)
GBPUSD