Monday, November 4, 2019

GBP/USD

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Fundamental Highlights

The Pound bulls hold on to recovery gains as the odds increase of a Tory leadership post-December election. All of the major market research companies, such as YouGov, Ipsos or Deltapoll, are suggesting a clear lead of the Tory leader Boris Johnson over the main opposition Labour Party ahead of the general election on December 12. However, the PM still seems skeptic of them as the Times mentions that the UK PM Johnson will remove threat of no-deal Brexit from Conservative party manifesto, keeping market sentiment in favor of the bulls.

Technical Analysis

The Pound buyers remain in control as price found support at the 1.2930 level, possibly heading towards 1.3011 October highs, as long as support holds. A Break above that level will open doors for further gains towards 1.3050. However, the bears need to break this recent bullish market structure, ideally by breaking below the 50-day moving average.

Support: 1.2930 / 1.2850
Resistance: 1.3011 / 1.3050

Chart (H4)
GBPUSD