Friday, August 2, 2019

GBP/USD - 02 August 2019


Fundamental Highlights

The British Pound gained some ground during yesterday’s session, on the back of a better-than-expected UK Manufacturing PMI data and as the yield on the 10-year treasury note fell almost 20 basis points towards 1.88%, the lowest level since November 2016. However, this bullish move was short-lived after Governor Carney warned that the UK economy faces a profound uncertainty, and a no-deal Brexit would cause instant shock to supply and demand. Market sentiment was once again dented after Carney’s comments as the bulls are once again relying on the following macroeconomic data; UK Construction PMI and US NFP, for any possible recovery rally.

Technical Analysis

The battle of the 1.21 support level resumes today as the bulls failed to break above 1.2150 during yesterday’s session. The buyers and sellers are stuck in a tight range between 1.2150 and 1.21, as both sides are waiting for a break to confirm the next possible move. A break below 1.21 will likely accelerate the fall towards 1.20 and a break above 1.2150 will likely lead the price to revisit 1.2250.

Support: 1.21 / 1.2050 / 1.20
Resistance: 1.2150 / 1.22 / 1.225

Chart (H4)