Tuesday, January 22, 2019

GBP/USD - 22 January 2019


Fundamental Highlights

The Pound ends Monday's session unchanged after a volatile trading day. Sterling was rather volatile as traders watched Prime Minister Theresa May deliver her Plan B for the Brexit agreement between the UK and the EU. The Pound ended the day unchanged mainly due to the fact that May's newly proposed planned did not offer anything new in the eyes of traders, investors, and politicians. For today, traders need to continue monitoring any news related to Brexit as it is the main driver of the pair, but they should also keep an eye on the set of economic data expected to be released today. Most importantly, investors need to focus on the UK unemployment rate and wage growth.

Technical Analysis

The Pound continues to range between the 1.2849 support and the 1.2915 resistance after no significant development related to Brexit took place. Moving forward, if today's UK economic data prints positive, the pair might break above the 1.2915 resistance and rise towards the next significant resistance level at 1.3004. On the other hand, if the data prints negative then the pair might break below the 1.2849 support and drop towards the 1.2790 support level.

Support: 1.2849/ 1.2790
Resistance: 1.2915 / 1.3004

Chart (H4)