Thursday, August 16, 2018

GBP/USD - 17 August 2018


Fundamental Highlights

The Cable pair continues to trade in the 1.26890 - 1.27365 range as investors await any developments associated with Brexit negotiations. The Pound has stalled as investors are uncertain whether or not there will be a Brexit deal. A “no-deal” Brexit will raise uncertainty in the British economy and lead to another leg of sell off in the British Pound, but in the meantime, no consequences will occur until any official announcement is made. For today, the Pound will be mainly driven by the greenback as no economic releases are expected from the U.K and the Michigan Consumer Sentiment index is set to be released from the U.S.

Technical Analysis

The Pound trades in a tight range between 1.26890 and 1.27365. Depending on the results of the Michigan Consumer Sentiment index, the currency may either break higher above 1.27365 exposing the 1.27891 level or break below the 1.26890 mark exposing the 1.26397 support level.

Support: 1.26890 1.26397
Resistance: 1.27365 1.27891

Chart (H4)