Tuesday, October 9, 2018

GBP/USD - 10 October 2018


Fundamental Highlights

The British Pound gains as optimism surrounding a Brexit deal grows. Currently, negotiations between EU and UK officials are being held in Brussels with expectations of a positive development to be confirmed in the beginning of next week. With no mention of official sources, ITV reported that Theresa May's chief negotiator Olly Robbins made “meaningful progress” with the EU's chief negotiator Michel Barnier on the Irish border problem. The Irish border topic has been one of the most disputed parts of the deal, and an agreement on this front would say a lot about the intentions of the two sides. In addition to the Brexit negotiations, the pair will also be driven by today's economic releases from the U.K and the U.S with the U.K's GDP and U.S's PPI as key figures to watch.

Technical Analysis

Technically, the British Pound is in an uptrend due to the optimism surrounding the Brexit negotiations. Yesterday, the Pound confirmed its bullish bias after it rejected the break below all the three major moving averages while also forming a bullish reversal double bottom pattern. Currently, prices are settled on a key resistance level and a rise towards 1.32904 is only confirmed if the pair crosses the 1.32214 mark.

Support: 1.32179 1.31811
Resistance: 1.32214 1.32904

Chart (H4)
gbpusd oct10