Monday, October 1, 2018

GBP/USD - 02 October 2018


Fundamental Highlights

The Pound trades lower in today's early trading due to the strengthening greenback. The U.S Dollar continues to strengthen across the board as investors lean towards the safe haven currency amid political unrest within the EU and within the U.K. The lack of developments related to Brexit is worrying investors explaining why they tend towards moving away from the British currency. Moreover, yesterday's U.K Manufacturing PMI printed lower than expected given investors no reason to feel optimistic regarding the British currency. For today, investors need to keep an eye on the U.K's Construction PMI figure since the result will either increase or decrease demand for the currency.

Technical Analysis

The Pound confirms the drop below 1.30387 and is now trading at 1.29952. The drop below 1.30387 also signaled a drop below the 200-peirod moving average, representing a broad shift in the trend of the market. The 13-period moving average is pointing lower and is approaching the 200-period moving average, a cross below the 200-period moving average will strengthen the bearish momentum. Given the break of the 1.30387, the 1.29346 is the next key level to keep an eye on.

Support: 1.29346 1.28187
Resistance: 1.30387 1.31513

Chart (H4)