Monday, August 12, 2019

GBP/USD - 12 August 2019


Fundamental Highlights

The Pound plummeted on Friday after the UK GDP data disappointed traders while Brexit headlines kept being negative, as the probability of a no-deal Brexit scenario is getting higher day after day. Adding to the weakness were not so positive outcomes of Industrial and Manufacturing Production. However, the Cable refrains from further declines below the key psychological support as market participants either await fresh major clues from the UK’s political front or from the US-China trade issue to extend decline.

Technical Analysis

The Sterling broke below the consolidation zone on Friday by taking out a key support level, 1.2085. The bulls found support at 1.2015, as they are looking to retest the recent broken support 1.2085. Failure to recapture that level will likely confirm that support turned into resistance, and the bears will most probably continue their domination by pushing price towards 1.20 and possibly even the all-time-low, 1.19.

Support: 1.20 / 1.19
Resistance: 1.2085 / 1.22

Chart (H4)