Wednesday, July 25, 2018

GBP/USD - 25 July 2018


Fundamental Highlights

The Pound jumps back towards last Friday's high as PM Theresa May claimed that she will take control of Brexit talks. This claim made investors increase their bets on a softer Brexit and thus pushed the pair higher. The Pound is expected to be mainly driven by Brexit politics and investors need to remain on the look out for any developments related to this matter. Today in specific, the pair will also be driven by the U.S New Home Sales figures. Better than expected U.S data will strengthen the greenback and slow down the Pound's rise.

Technical Analysis

The Sterling rises back towards the 0.618 retracement after breaking back above the 50-period moving average. A break above the 0.618 level will expose the next resistance level at 1.32093 which also coincides with the 200-period moving average.

Support: 1.30507 1.29571
Resistance: 1.31622 1.32093

Chart (H4)