Thursday, August 9, 2018

GBP/USD - 10 August 2018


The Pound's sell-off deepens as worries for a “no-deal” Brexit rise. Following last week's negative Brexit comments from Governor Carney and U.K's Trade Minister, investors began selling off the Pound. The major worry in the market is that the U.K will have to settle for a hard Brexit or delay the exit. For today, investors will be watching the release of U.K's GDP figure and a lower than expected number will worsen the Pound's performance. Moreover, a positive release from the U.S CPI today might help the greenback put further pressure on the Pound.

Technical Analysis

The Pound crashes below the 1.28386 support level and drops towards the 1.27891 support level. As the negative sentiment continues, the Pound is most likely going to continue its drop. A break below the 1.27891 mark may clear the path for a drop towards the next price action support level which coincides with the 1.618 Fibonacci extension.

Support: 1.27891 1.27066
Resistance: 1.28386 1.29176

Chart (H4)