- A setback for the Pound so far this week as fears of a no deal Brexit have resumed.
- Furthermore, a rebounding US Dollar on Monday-Tuesday as trade war fears have ebbed has reinforced the negative GBPUSD tone.
- Below we look at the technical for GBPUSD.
The surge last week above 1.2250 was initially reinforced by the extension up to 1.2294, but the intraday setback seen Monday now switches risks back lower for Tuesday.
The latter August through 1.2250 resistance neutralised the intermediate-term bear trend and established an intermediate-term range, we see as 1.2518 to 1.2013.
- We see a downside bias for 1.2193; break here aims for 1.2106.
- But above 1.2251 opens risk up to 1.2294.
Intermediate-term Range Breakout Parameters: Range seen as 1.2518 to 1.2013.
- Upside Risks: Above 1.2518 sets an intermediate-term bull trend to aim for 1.2784/1.2814, 1.3000 and 1.3177.
- Downside Risks: Below 1.2013 and 1.2000 sees an intermediate-term bear trend to target 1.1866 and 1.1755.
4 Hour GBPUSD Chart