Thursday, December 6, 2018

GBP/USD - 06 December 2018


Fundamental Highlights

The Pound remains subdued around the lower end of the 1.2700 support level as investors await any significant news related to Brexit to guide them through the next directional move in the pair. In addition to news related to Brexit, the pair might also move due to changes in general risk sentiment within investors as a drop in sentiment will drive investors away from high beta currencies such as the Pound. For today specifically, Pound traders need to also keep an eye on the US’s ISM Non-Manufacturing PMI figure which will affect the currency pair from the greenback’s side.

Technical Analysis

The Pound continues to trend lower while moving averages point lower as well. The pair's momentum is generally bearish given that prices are trading below all the three major moving averages. The next bear run downwards will occur after a break of the 1.2671 support paving the way for a drop towards the 1.2620 support level.

Support: 1.2671/ 1.2620
Resistance: 1.2829 / 1.2875

Chart (H4)