Tuesday, January 15, 2019

GBP/USD - Jan 15 2019


Fundamental Highlights

The Pound remains in ranging territory as investors await the UK Parliament's Brexit deal vote. Most analysts are expecting the House of Commons to vote "no" on the deal, but they are looking forward to seeing by what margin Theresa May's proposed deal will fail to go through. A tight margin will be positive for the Pound as it will signal that the Parliament is not adamant on leaving the EU without a deal.

Technical Analysis

The Pound breaks above the 1.2894 resistance but retreats as investors are indecisive about the future direction of the currency. The indecision is due to investors awaiting the result of the UK Parliament's Brexit vote. Following the results of the vote, the break back above the 1.2894 resistance will pave the way for a rise towards 1.2950, while the break below the 13-period moving average and the 1.2845 mark will pave the way for a drop towards 1.2781.

Support: 1.2845/ 1.2781
Resistance: 1.2894 / 1.2950

Chart (H4)