GBP/USD Analysis: Surges ahead of UK May’s speech

Dukascopy Bank Team Dukascopy Bank SA

"Every time there's 'hard Brexit' headlines, that triggers a fresh bout of selling sterling."

– MUFG (based on Business Recorder)

Pair's Outlook
As was anticipated, the British Pound partially recovered from the bearish gap yesterday, but with the 1.21 level still remaining intact. Today, however, the Sterling is under high risk of falling even under the 1.19 mark, with UK Prime Minister's speech being the driver, as she is expected to unveil all Brexit details today. Hard Brexit clues are likely to be devastating for the Pound, but positive news could even trigger a surge above 1.22, meaning the two closest resistances are to be pierced. However, technical indicators are unable to confirm either scenario, as they keep giving mixed signals in the daily timeframe.
Traders' sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 73% (previously 73%). At the same time, all pending orders are equally divided between the buy and the sell ones.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2130
2. R2 1.2091
3. R1 1.2067
PP 1.2027
1. S1 1.2003
2. S2 1.1964
3. S3 1.1940

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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