Tuesday, August 7, 2018

GBP/USD - 08 August 2018


Fundamental Highlights

The Pound remains to trade slightly above the 11-month low. Although the U.S Dollar weakened yesterday, the Sterling failed to capitalize on this setback and rise. Pound buyers remain hesitant in regards to the future state of the British economy as Brexit politics remain worrisome and unclear. The last major comment related to Brexit came from U.K's Trade Minister, Liam Fox in which he pointed out that there is a chance the U.K will not reach a deal with the EU and will have to settle with a hard Brexit.

Technical Analysis

At the beginning of the week, the Pound broke below the 1.30033 support level which paved the way for a drop towards 1.29591. For the past two days, the pair has consolidated around the 1.29591 support level in anticipation of further fundamental developments to drive price action. For now, the sentiment remains bearish for the Pound and a break below the 1.29176 support will pave the way for a drop towards 1.28515.

Support: 1.29176 1.28515
Resistance: 1.30033 1.30502

Chart (H4)