GBPUSD
Sterling maintains firm tone in early Thursday's trading and pressures previous day's high at 1.2670, posted after 1.1% daily rally on Wednesday. UK PM Theresa May survived the confidence vote of her own party and will continue to lead the country on its way for the exit from the European Union. Current positive sentiment could further boost pound, however, strong concerns over disorderly Brexit, which could be very likely scenario of the end of divorce process, keep overall picture negative. PM May's Brexit plan faces strong opposition, as Wednesday's vote showed that more than a third of Conservative party lawmakers are against it, indicating that parliamentary approval of Brexit deal is not closer than before the confidence vote to PM May. Wednesday's bullish outside day is positive signal, but key barriers at 1.2675/83 (falling 10SMA / Fibo 61.8% of 1.2810/1.2476) need to be cleared to signal further recovery and expose next strong barriers at 1.2744 (falling 20SMA / Fibo 61.8% of 1.3174/1.2476). Overall picture is negative and suggest that current recovery could be seen as positioning for fresh weakness. Only sustained break above pivotal barriers at 1.2907/35 zone (Fibo 61.8% of 1.3174/1.2476 / 22 Nov high / falling 100SMA) would neutralize bears.
Res: 1.2670; 1.2683; 1.2744; 1.2810
Sup: 1.2603; 1.2591; 1.2555; 1.2476
Interested in GBPUSD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.