Thursday, January 24, 2019

GBP/USD - 24 January 2019


Fundamental Highlights

The Pound rises towards the 1.3085 resistance level as investors priced in the possibility of the UK parliament postponing the Brexit deadline in March 29, in order to avoid the prospect of the UK leaving the EU with no deal. On Wednesday, news outlets reported that the UK Labour Party is endorsing a proposal to delay the current Brexit deal. The postponement of the Brexit deadline removes the risk of a “no deal” Brexit and decreases the negative uncertainty regarding Britain's economic and social future. For today, traders need to continue focusing on any news announcement related to Brexit.

Technical Analysis

The Pound breaks above another resistance level for a second day in a row and rises towards the 1.3085 resistance zone. For now, the currency's momentum is bullish as prices are trading above all the three major moving averages. The next move up will be confirmed if the pair manages to break above the 1.3102 resistance paving the way for a rise towards 1.3085. If a bearish Brexit development occurs then the pair will break below the 1.2964 support and push lower towards the 1.2905 support.

Support: 1.2964/ 1.2905
Resistance: 1.3085 / 1.3102

Chart (H4)