Wednesday, August 7, 2019

GBP/USD - 07 August 2019


Fundamental Highlights

The British Pounds remains in consolidation despite increasing odds for no-deal Brexit. Even if the Irish PM requests the EU and the UK to discuss and solve the backstop issue, it doesn’t seem the only barrier that can help overcome the departure, British lawmakers demanding a complete revamp of the deal to justify the Brexit. It should also be noted that the EU recently turned down renegotiation request, plotting against the UK PM Boris Johnson if he defies no-confidence motion. Lack of any Brexit breakthrough will likely keep the volatility at bay in today’s session as the House of Commons won’t be returning from the summer recess until September 3rd.

Technical Analysis

After days of consolidation, the Sterling formed a symmetrical triangle pattern, where a break to either side will confirm the next possible price destination. The bias tilts a bit towards the sellers, as the overall trend remains bearish so far. A break below 1.2150 will accelerate the sell-off towards the recent low 1.2080. However, in the slight chance of a break to the upside, the gains will extend towards 1.2250.

Support: 1.2150 / 1.2080
Resistance: 1.22 / 1.2250

Chart (H4)