Wednesday, April 24, 2019

GBP/USD - 24 April 2019


Fundamental Highlights

The Pound slipped to the lowest level since February 19, as the return of the UK lawmakers from Easter recess flooded global markets with Brexit pessimism. PM May's spokesman told reporters that the PM's focus was passing the withdrawal agreement bill and repeated that both sides, Labour party and the government, needed to compromise in order to reach a deal. On the contrary, upbeat new home sales and rising equities turned global investors to the US Dollar, adding more pressure on the Sterling. However, the sentiment remains very bearish, so any negative Brexit catalyst can have a strong impact on the market.

Technical Analysis

The Pound attempted to break above 1.30 during yesterday’s session but the bears found momentum and pushed price lower by breaking below a couple of important support levels. The Pound is currently trading over and under 1.2930 (S1). The sentiment will remain bearish as long as the Sterling is trading below 1.30. So a break below this support could open doors for more weakness towards 1.29 (S2) and possibly even 1.2850 (S2).

Support: 1.2930 / 1.29 / 1.2850
Resistance: 1.2960 / 1.2980

Chart (H4)