Tuesday, May 7, 2019

GBP/USD - 07 May 2019


Fundamental Highlights

The Pound’s bullish momentum took a pause during yesterday’s session as doubts and uncertainty over Brexit developments resurface. Earlier today, the Telegraph’s news reported that there are many Tories who are united to remove the PM May from authority if she seeks opposition Labour party’s support for her Brexit proposal. Furthermore, Brexit party leader Nigel Farage warned PM May that a soft-Brexit stitch-up would be the “final betrayal” of British people who voted to leave. Looking forward, the UK Halifax house prices and the US JOLTs job openings are the only data that traders would be interested in today, while Brexit headlines could keep playing background noise.

Technical Analysis

The Pound pulled back yesterday after it reached as high as 1.3175 (R1) on Friday. The Cable found support at 1.3080 (S1) and bounced for a potential retest of the Friday highs. The bulls need to find momentum and break through 1.3175 (R1), to stay in control. On the other hand, the bears need to break below 1.3080 (S1) and 1.3060 (200-day moving average), to regain control and take price much lower.

Support: 1.3115 / 1.3080
Resistance: 1.3175 / 1.3240

Chart (H4)