Tuesday, March 5, 2019

GBP/USD - 05 March 2019


Fundamental Highlights

The Pound closed negatively yesterday as the Markit Construction PMI posted its first decline in almost a year, printing 49.5 in February from 50.6 in January. In Brexit news, PM May's spokesman said that the government is still focused on leaving on March 29, and wants the Parliament to vote on a Brexit deal next week, on March 12, adding that anyway, "more work needs to be done," when talking about negotiations with the EU. Today, the macroeconomic calendar has the BRC survey on sales and the UK will release the February services PMI, expected at 49.9 vs the previous 50.1, which could heavily impact the Sterling’s outcome for the day.

Technical Analysis

The Pound continued to pullback on Monday as the bears are looking more in control. Price action looks weak so we are likely to see the Sterling testing 1.30 (S2) or even lower, before accelerating back up.

Support: 1.315 / 1.31
Resistance: 1.32 / 1.325

Chart (H4)