Friday, June 28, 2019

GBP/USD - 28 June 2019

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Fundamental Highlights

The British Pound fell a bit yesterday after hard Brexit fears once again took the toll on the pair. The UK Times reported that British PM candidate Boris Johnson is preparing an emergency budget for a no-deal scenario that includes aggressive tax cut. Moreover, Boris Johnson’s latest promises to have a trade deal with the EU even after no-deal Brexit also got criticism from home and abroad alike. In terms of macroeconomic data, earlier today, GfK Consumer Confidence for the UK slipped beneath -11 forecast to -13 which in turn provided additional weakness to the Sterling. Looking ahead, traders will keep an eye on today’s UK GDP and Current Account data as it could point the short-term direction of this pair.

Technical Analysis

The Sterling attempted to break above the 200-day moving average yesterday but failure to do so kept prices stuck in the same range, between 1.2715 and 1.2660. The bulls had their chance to break above that resistance but failed, today we will likely see the bears trying to break below 1.2660 to push price lower towards 1.26.

Support: 1.2660 / 1.26
Resistance: 1.2715 / 1.2760

Chart (H4)
GBPUSD