GBP/USD Awaiting Outome of Johnson/Merkel Talks

Russell Shor, CFTe, MFTA FXCM

The below is the hourly chart of the GBPUSD. Cable responded positively yesterday to comments made by Chancellor Merkel saying that “we will think about practical solutions to backstop.” However, it may very well be worth remaining cautious given that German president Steinmeier has stated that all backstop scenarios have already been discussed. We note that the green 5-hour EMA is below the orange 10-hour EMA (green ellipse) and that the RSI is below 50 (blue rectangle) i.e. bearish mode. As such, we await the outcome of today's talks between Johnson and Merkel and, especially, how these will affect the technicals.

Past performance is not an indicator of future results.
CHART SOURCE: FXCM MARKETSCOPE 2.0

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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