GBP/USD suffers at Upper AP line as Brexit headlines hit GBP markets

Intermediate
  • Sterling took a hit across the board after headlines about the British government possibly asking the Queen to prorogue parliament. 
  • Gilts pushed higher in response with cable taking a knock to touch its lowest in 4 days. 
  • The pair touched its highest since July, but a bearish Andrews Pitchfork scuppered further upside. 
  • AP keeps dynamic bear trend intact. We mentioned in our prior post that this level may offer sellers a worthwhile level to sell into. 
  • Market has found support at the 21 EMA at 1.2212 as it pares some of its losses. A close below the 21 EMA could reignite s-t bear pressure. 
  • A lower support level is seen at 1.2125, the 61.8% fib level of the August rally.
  • RSI pops back into negative space after forming a double top at 54, reinforcing s-t downside risks.
Daily EURGBP and GBPUSD Chart

Editor

Akif SH. Din MSTA, CFTe, 2018 Bronwen Wood Memorial Prize Winner, has a solid understanding of global markets, fundamental analysis as well as having a vast amount of knowledge in technical analysi...continued

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