Wednesday, September 12, 2018

GBP/USD - 13 September 2018


Fundamental Highlights

The Pound stagnates within the 1.29981 - 1.30900 range in anticipation of the BoE's statement set to be published today. Based on what has occurred in the past two weeks, the BoE's statement leans more towards the positive end. Brexit negotiations seem to be progressing in a positive manner, and economic data released recently points towards a healthy future for the British economy. Two days ago, EU's chief negotiator, Michel Barnier stated that a Brexit deal will be struck in the next two months raising hopes of a swift agreement between the EU and the U.K. Additionally, retail sales, inflation, and wage growth figures all beat expectations and showed positive acceleration relative to previous numbers.

Technical Analysis

If the BoE statement today points towards an optimistic outlook for the U.K, the pair will continue its uptrend and break above the 1.30900 resistance level which will pave the way for a rise towards 1.32000. If the BoE gives worrisome signals then the pair will shift its short term trend and break below the 1.29981 level paving the way for a drop back towards the 200-moving average at 1.29608.

Support: 1.29981 1.29608
Resistance: 1.30900 1.32000

Chart (H4)