Thursday, October 24, 2019

GBP/USD

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Fundamental Highlights

The British Pound recovered from yesterday’s lows after the US Dollar weakness; however, it could remain directionless with Brexit being in limbo. Having failed to persuade Parliament to approve the Brexit deal as law, UK's PM is now waiting for the EU to decide whether to agree to his three-month delay request. European Council President Donald Tusk said on Twitter he was recommending that the leaders of the EU's 27 other member states back a delay. Market sentiment will turn positive once the EU agrees to Boris Johnson’s request, which will likely push the Cable higher.

Technical Analysis

The Sterling bulls show resiliency as price picked up steam without even testing the 50-day moving average. The buyers are currently targeting 1.30 and possibly extending their gains above that key level. The bears on the other hand will need to break below the 50-day moving average to regain possession.

Support: 1.29 / 1.28
Resistance: 1.30 / 1.3050

Chart (H4)
GBPUSD