Thursday, November 8, 2018

GBP/USD - 08 November 2018


Fundamental Highlights

The Pound gains further as Brexit negotiations reach their latest stage. Completing the Brexit deal is almost done, and the only remaining issue is the Irish border. Traders are currently pricing in an agreement regarding this key issue mainly due to the fact that Prime Minister Theresa May and her team suggested a reasonable solution in which the whole UK will remain within the EU’s customs union avoiding any hard border in the Irish island. For today, the Pound’s strength is being subdued by a rising US Dollar as traders square up and prepare for a hawkish FOMC statement.

Technical Analysis

The Pound ranges around a key resistance level at 1.3110 in anticipation of the FOMC statement. The bias of the pair remains bullish given the positive Brexit developments, this fact is confirmed by prices trading above all three major moving averages. The Pound's rally may be paused for today as a hawkish FOMC statement will strengthen the US Dollar and put downward pressure on the pair. On the other hand, a dovish FOMC statement will add more positivity to the Pound which will help push the currency higher towards 1.3228.

Support: 1.3095 / 1.2990
Resistance: 1.3177 / 1.3228

Chart (H4)