Thursday, August 8, 2019

GBP/USD - 08 August 2019


Fundamental Highlights

The British Pound holds its ground despite the widely discussed no-deal Brexit concerns. While news of full-fledged preparations of a no-deal Brexit by the UK lawmakers keeps making the rounds, the latest report says that the UK PM Boris Johnson could call for a general election just following the Brexit, on November 1, to gain the support of Leave voters. Additionally, it should be noted that some among the Tory rebels are plotting to oust PM Johnson in case he fails no-confidence vote, which is likely being taken on early September by lawmakers who fear hard Brexit. The bearish sentiment around the US Dollar is keeping the Sterling afloat for now, but any major Brexit news could resume the fall of the Cable.

Technical Analysis

Price broke below the symmetrical triangle pattern but so far we saw no follow through, if the Sterling remains below the broken support, then the sentiment would favor a drop towards the recent low 1.2080. If, on the other hand, the Cable bulls manage to take out 1.22, then further gains towards 1.2250 would be confirmed.

Support: 1.2135 / 1.2080
Resistance: 1.22 / 1.2250

Chart (H4)