Monday, August 5, 2019

GBP/USD - 05 August 2019


Fundamental Highlights

The bearish momentum remains on the British Pound while some among the Conservative party doubt over the PM Johnson’s ability to crash the UK out of the EU without any deal, several others including the British Brexit negotiator and a top ally to Mr. Johnson continue to increase odds that such an outcome isn’t far to reach. Policymakers are about to announce additional budget as a part of their preparations for the no-deal Brexit. Following an announcement of £2.1 billion funding by UK Finance Minister Sajid Javid, PM Johnson pledges extra £1.8 billion during early Monday in Asia. Today, July’s PMI numbers for the UK and the US services activities will be on the traders’ watch-list, any improvement in the data could help strengthen the short-term state of the respective currency. But the main focus will remain on any Brexit development.

Technical Analysis

The bulls attempted to fight back against the recent bearish trend but lost momentum earlier this morning just below the 1.22 resistance, and started to roll over. The bears are now attempting to break below the 1.21 support level, targeting 1.2050 and possibly the major psychological figure 1.20.

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

Chart (H4)