Monday, September 3, 2018

GBP/USD - 04 September 2018


Fundamental Highlights

The Pound continues its slide as investors digest uncertainty regarding the outcome of the Brexit deal between the United Kingdom and Europe. Earlier this week, tensions rose between the British Prime Minister Theresa May and EU's chief negotiator Michel Barnier with Barnier claiming that he “strongly” objects to a part of May's Brexit proposal. For today, investors will focus on two key economic events from the U.K, the Construction PMI number and the Inflation Report Hearing.

Technical Analysis

As bearish sentiment remains, Sterling continues to fall. Yesterday, the pair broke below the 50-period moving average and the 1.29374 price action support level paving the way for a drop towards the 1.28287 support level. Adding to the bearish momentum, the 13-period moving average has recently crossed below the 50-period moving average.

Support: 1.28287 1.27549
Resistance: 1.29024 1.29374

Chart (H4)