Thursday, October 11, 2018

GBP/USD - 12 October 2018


Fundamental Highlights

The British Pound is enjoying a strong weekly rally rising over 100 pips since the beginning of the week. The rally is mainly attributed to the rising optimism around the Brexit deal between the EU and Britain with both sides working towards closing a deal as soon as next Monday. Moreover, the Pound was also supported by a weakening U.S Dollar which witnessed a three day decline amid concerns about the future of the U.S economy and the future of the Fed's ultra hawkish monetary policy.

Technical Analysis

Following the release of the worse than expected CPI figures from the U.S, the Pound managed to break above the 1.3221 resistance level, paving the way for a rise towards the September highs. All major moving averages are pointing upwards with the 13-period moving average serving as a constant support for prices. Momentum will remain bullish during today's trading as long as prices remain above the 13-period moving average.

Support: 1.3218 1.3181
Resistance: 1.3180 1.3221

Chart (H4)