Wednesday, October 31, 2018

GBP/USD - 31 October 2018


Fundamental Highlights

The British Pound breaks down further for the week as investors drive away from the British currency amid growing concerns that the Brexit negotiations will end with a “no deal”. Note that the main complication within the deal is the future of the Irish border post Brexit. The Pound was also driven lower as the US Dollar strengthened following better than expected US consumer confidence number. For today, the focus will remain on any developments related to Brexit and economic data from the US with the ADP Non-farm Payroll Change being the key figure to monitor.

Technical Analysis

The Pound continues to drop and break below support levels. Most recently, the Pound dropped below the 1.2792 support level exposing the current price level at 1.2730. As negativity surrounding the Brexit negotiations remain, the pair is expected to continue pushing lower. The next drop will be triggered after a break of the 1.2695 point which will expose the next key support level at 1.2654.

Support: 1.2695 / 1.2654
Resistance: 1.2792 / 1.2840

Chart (H4)