Friday, August 9, 2019

GBP/USD - 09 August 2019


Fundamental Highlights

The British Pound, yet again, shows little reaction to the UK political development. Growing speculations of the UK PM Boris Johnson’s formal announcement of a general election just after the Brexit day seems making the opposition, and some of the Tory rebels, uneasy as they are planning to hold a no-confidence vote during early September. Some among the PM Johnson’s haters are planning to approach the Queen, if the PM disobeys lawmaker’s voting to overthrow, while others have written senior Civil servants to intervene. The Sterling, however, did not even budge amid all these uncertainties, but today the UK will release GDP and Manufacturing Production data, both expected to print lower than the previous month. Negative data could be the trigger for the bears to resume the sell-off towards the all-time-lows.

Technical Analysis

The Sterling remains trading in a consolidation with no apparent bias, as the bulls and the bears are waiting for a break above 1.22 or below 1.2080 to take control and push price respectively. The sentiment however, favors the bears thus a drop towards 1.20 has slightly better odds.

Support: 1.2080 / 1.20
Resistance: 1.22 / 1.2250

Chart (H4)