Monday, February 4, 2019

GBP/USD - 04 February 2019


Fundamental Highlights

Investors are starting to lose their patience towards the Pound, as uncertainty remains a big issue regarding Brexit. Additionally, The U.K. Manufacturing PMI missed the forecast by printing 52.8 vs 53.5, which in turn helped the Pound to close negatively on Friday. For today, investors will be on the lookout for any new development concerning Brexit, and also we have the U.K. Construction PMI set to be released during the day.

Technical Analysis

On Friday, the Pound broke below the 50-day moving average (blue line) and started hovering just above the trend line (orange line), which dates back to the beginning of the year. If the bulls are serious in keeping this trend intact, then they need to push price higher and close at least above 1.31. If they fail to do that, and the bears break below the trend line and the 1.3050 (S1), then we could possibly see further weakness towards 1.3 (S2) and possibly even lower.

Support: 1.3050 / 1.2920
Resistance: 1.3150 / 1.32

Chart (H4)