Wednesday, January 30, 2019

GBP/USD - 30 January 2019


Fundamental Highlights

The Pound drops sharply lower as the UK parliament votes against the delay of the Brexit deal. Yesterday, the UK parliament went into a spree of voting rounds related to the proposed Brexit deal. The market sold off the Pound and felt fearful when the parliament voted against delaying the deal. The failure to delay the deal means that the parliament will now have to make an arrangement to consent on a deal before February 26. Such event gives the UK less time to attempt to renegotiation the deal with the EU, which seems adamant to keep the Brexit deal as is. For today, alongside any Brexit developments, traders need to also monitor the FOMC statement as it will affect the pair from the greenback's side.

Technical Analysis

The Pound breaks below the 13-period moving average signaling a short term shift in momentum. For today, investors will be focusing on how the currency reacts around the 50-period moving average. A break below the 50-period moving average will signify a broader shift in the momentum of the pair and expose the 1.2910 support.

Support: 1.3048 / 1.2910
Resistance: 1.3132 / 1.3232

Chart (H4)