GBP/USD: Bull cross confirmed, focus on UK parliamentary vote on December election


  • A long-term bull cross seen on technical charts favors the upside in GBP/USD. 
  • Gains will likely remain elusive if the UK parliament rejects early election offer. 

The path of least resistance for GBP/USD is on the higher side, according to a key technical indicator. Big gains, however, may remain elusive if the UK parliament again rejects Prime Minister Borish Johnson's December election offer.

Bull cross confirmed

The 50-day moving average has crossed above the 100-day moving average, confirming a bullish cross for the first time since February.

The crossover indicates a continuation of the recent rally from lows near 1.22 and so does the bull flag seen on the 4-hour chart.

Focus on UK political drama

The European Union on Monday granted a three-month Brexit extension and the UK parliament rejected Johnson's proposal for snap elections.

PM Johnson will call another vote on a December election Tuesday, which has a greater chance of success, as it would only need a simple majority to succeed – not two thirds as required in previous attempts, according to the BBC.

That said, Johnson would still need support from the Liberal Democrats and the Scottish National Party. The two parties have expressed willingness to support an early election if the PM satisfies three conditions: a no-deal Brexit is ruled out, there is no attempt to pass the PM's Brexit deal before the election and the election date is stipulated.

The British Pound will likely challenge recent highs above 1.30, as suggested by technical studies if the Parliament approves an early election. If the vote fails, then GBP may drop below support at 1.2788.

On the data front, the UK housing prices, Consumer Credit, Money Supply, and Mortgage Approvals are scheduled for release during the European trading hours. Across the pond, the focus will be on the US Consumer Confidence data and Pending Home Sales. 

Technical levels

GBP/USD

Overview
Today last price 1.2848
Today Daily Change -0.0012
Today Daily Change % -0.09
Today daily open 1.286
 
Trends
Daily SMA20 1.2622
Daily SMA50 1.2436
Daily SMA100 1.2433
Daily SMA200 1.2715
 
Levels
Previous Daily High 1.2878
Previous Daily Low 1.2811
Previous Weekly High 1.3013
Previous Weekly Low 1.2787
Previous Monthly High 1.2583
Previous Monthly Low 1.1958
Daily Fibonacci 38.2% 1.2852
Daily Fibonacci 61.8% 1.2836
Daily Pivot Point S1 1.2822
Daily Pivot Point S2 1.2783
Daily Pivot Point S3 1.2755
Daily Pivot Point R1 1.2888
Daily Pivot Point R2 1.2916
Daily Pivot Point R3 1.2955

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD consolidates losses below 1.3150 amid a tighter election poll

GBP/USD is trading below 1.3150, consolidating its losses after YouGov's MRP poll showed a tighter Conservative majority ahead of the UK elections on Thursday. Trade headlines and the Fed decision are also awaited.

GBP/USD News

EUR/USD remains pressured below 1.11 amid trade uncertainty, ahead of the Fed

EUR/USD is trading below 1.11, consolidating its gains. Uncertainty about the planned US tariffs on China looms and tension is mounting ahead of US inflation and the all-important Fed decision.

EUR/USD News

Forex Today: Boris gets a blow from big poll, tariff threat looms, focus on the Fed

President Donald Trump has yet to decide on the December 15 tariffs, according to the Wall Street Journal. On the other hand, the paper says that negotiators are laying the groundwork for a deal.

Read more

Gold stalls two-day winning streak on the Fed day, trade jitters continue

Gold prices register a mild loss of -0.05% while hovering below $ 1465 on Wednesday. The yellow metal seems to have lacked buying interest ahead of the key monetary policy meeting by the US Federal Reserve (Fed).

Gold News

USD/JPY: 200-hour EMA questions immediate rising trend-channel

USD/JPY recently took a U-turn from 200-hour Exponential Moving Average (EMA). Even so, it stays well within the two-day-old rising trend-channel formation. The pair trades around 108.75 at the press time on Wednesday.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures