Tuesday, March 19, 2019

GBP/USD - 19 March 2019


Fundamental Highlights

The Pound had a quite volatile day as Brexit-related headlines flooded the news feeds, starting with a member of the conservative party saying that in the case the choice comes down to May's deal or no Brexit, he would support for the deal. Other members, however, rejected the argument and said they will vote against May's deal regardless. It is clear that the market still believes that a hard Brexit will be avoided, or else, the Sterling would have collapsed with this amount of uncertainty around it. However, and with just 11 days to go ahead of the exit date, nothing seems to be falling into place. PM May needs to deliver the undeliverable to save the UK and her career. Today, the UK will publish February CPI figures but traders will mainly focus on possible more Brexit drama.

Technical Analysis

1.3230 (S1) is acting as a very strong support for the past few trading sessions. The bulls will attempt to retest 1.3350 (R1) for a possible break higher towards 1.34 (R2). While the bears, will try to break below this highly important support 1.3230 (S1) for a possible push lower towards 1.3150 (S2).

Support: 1.3230 / 1.3150
Resistance: 1.3350 / 1.34

Chart (H4)