- GBP/USD is trading 0.18% higher despite a recent move lower.
- There was also a rejection of a trendline on the hourly chart.
Fundamental backdrop - A Brexit deal is hanging in the balance
Last week we saw the eighth round of negotiations end in disaster yet again with both parties saying talks had stalled. The main sticking point at the moment is if the UK will go back on their word over the customs territory in Northern Ireland. The Internal Market Bills is currently working its way through the House of Commons and the House of Lords. At the moment it is not clear if the bill will pass but if it does it will break international law. A deal could still be possible but this could represent a lack of trust and could impact the future of the relationship between the EU and UK.
This week the market will get the latest from both the Bank of England and US Federal Reserve. This will be sure to inspire some volatility. Of the two, the BoE has been sounding more dovish speaking about the possibility of negative interest rates and more QE. The Fed, however, have been asking for more fiscal support but the White House have been stalling for weeks as the Democrats and Republicans are at odds with each other over the amount and usage of the additional cash. Analysts will be looking for more clarification on the Fed's new targeted employment levels and inflation goals.
Technical picture - Trendline rejection sends the price lower
The 1-hour chart below shows the extent of the downtrend in cable. The price has moved around 4.5% lower from the highs on the chart but the 1.2762 low did prove to be a decent support level. The main feature on the chart is the downward sloping trendline and the price bounce off it once again and sold off. There has been one higher low and higher high wave but the price will need to break the trendline once again for the reversal to gain momentum. On the topside, bulls will need to watch out for the red resistance line at 1.2920 as it has been used three times already.
|Today last price||1.2874|
|Today Daily Change||0.0027|
|Today Daily Change %||0.21|
|Today daily open||1.2847|
|Previous Daily High||1.2919|
|Previous Daily Low||1.2777|
|Previous Weekly High||1.3279|
|Previous Weekly Low||1.2763|
|Previous Monthly High||1.3396|
|Previous Monthly Low||1.2982|
|Daily Fibonacci 38.2%||1.2865|
|Daily Fibonacci 61.8%||1.2831|
|Daily Pivot Point S1||1.2776|
|Daily Pivot Point S2||1.2705|
|Daily Pivot Point S3||1.2634|
|Daily Pivot Point R1||1.2919|
|Daily Pivot Point R2||1.299|
|Daily Pivot Point R3||1.3061|
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.