Thursday, June 27, 2019

GBP/USD - 27 June 2019


Fundamental Highlights

The British Pound ended the day relatively unchanged as investors are digesting the newest British political drama. Boris Johnson, one of the two final candidates for the UK PM’s post, said the chances of a no-deal Brexit are a “million-to-one against”, as he believes that the EU and MP’s will pass a new Brexit deal. That said, the market didn’t quite budge as it is trying to digest Boris Johnson’s U-turn move from previous Brexit bias. Today, traders will shift their attention to the US GDP and Pending Home Sales numbers to figure out the next possible move, as uncertainty in British politics prevails.

Technical Analysis

The Sterling is currently stuck between the 200 and the 50-day moving averages with no apparent bias, waiting for a break to either side to make a move. The bulls will attempt to break above 1.2715 to retest the infamous 1.2760 resistance line. And the bears, will try to break below 1.2660 to push prices lower towards 1.26.

Support: 1.2660 / 1.26
Resistance: 1.2715 / 1.2760

Chart (H4)