Wednesday, May 8, 2019

GBP/USD - 08 May 2019


Fundamental Highlights

The British Pound fell during yesterday’s session as cross-party Brexit talks failed to deliver an agreement over the Brexit deal that the PM May could present in the parliament for voting. As a result, the UK now has to take part in the EU election. After the failed negotiations, PM May has been given a deadline today to officially resign otherwise she will have to accept whatever plans are being determined by the Tories. This dented the recent bullish market sentiment as uncertainty has taken over once again. In macroeconomic news, the UK will publish Halifax House Price index which could have a short-term impact on price. Also, MPC member Ramsden will be speaking regarding any updates in the monetary policy.

Technical Analysis

The Pound found support at 1.3050 (S1) and the 200-day moving average and bounced towards 1.3080 (R1). The bulls are losing momentum and if price won’t be able to break above 1.3080 (R1) then we could likely see further weakness towards yesterday low and even the 1.30 psychological round number (S2). However, a break above 1.3080 could take price higher for a 1.3130 (R2) retest.

Support: 1.3050 / 1.30
Resistance: 1.3080 / 1.3130

Chart (H4)