Monday, April 8, 2019

GBP/USD - 08 April 2019


Fundamental Highlights

The Pound gained some ground on Friday after Goldman Sachs report showed lesser chances of a no-deal Brexit. However, PM May continues with her struggle with the opposition Labour party leader Jeremy Corbyn to arrive at the Brexit deal that can be acceptable by the British lawmakers. PM May has already requested the EU for an extension to April 12 Brexit deadline. However, they still need a Brexit deal approved by the British politicians. All in all, the sentiment on the Sterling remains neutral as nothing is certain yet and price could head to either way on any new Brexit development. In economic news, we have no data coming out from the UK today, but the US is releasing February Factory Orders which could have a soft impact on the pair.

Technical Analysis

The Pound continued to sell-off on Friday up until the bulls showed up right on time just above a major support area 1.2990 (S2). The Sterling bounced and found resistance at 1.3065 (R1), if a break above that level occurs, price could revisit 1.31 (R2), which coincides with the 50-day moving average (blue line). However, if the bears successfully protect 1.3065 (R1) then a pullback towards 1.3020 (S1) and 1.2990 (S2) will be a likely scenario.

Support: 1.3020 / 1.2990 / 1.2960
Resistance: 1.3065 / 1.31 / 1.3150

Chart (H4)