Thursday, November 1, 2018

GBP/USD - 01 November 2018


Fundamental Highlights

The Pound rallies as the UK and the EU strike a financial services deal for UK companies post Brexit. This deal will allow UK companies to have access to European markets. The interesting and attractive part about this deal is that financial services firms in the UK will continue to operate in the same manner as they did when the UK was part of the EU. This idea eliminates uncertainty surrounding the future of these companies and removes the need for banks and other financial institutions to relocate to a country within the EU. For today, the focus will remain on any developments related to Brexit as well as the BoE’s interest rate decision and monetary policy statement by its governor.

Technical Analysis

The Pound bounced off the 1.2695 support level and rallies following positive developments related to the Brexit negotiations. As a signal of bullish momentum, the pair has recently broke above both the 13 and 50-period moving averages. Moreover, the break above the 1.2831 resistance level will pave the way for a rise towards 1.2925.

Support: 1.2831 / 1.2792
Resistance: 1.2925 / 1.2986

Chart (H4)