Pound erratic through first Brexit vote, with second vote in focus

Intermediate
  • An erratic tone for Sterling through the first vote on Prime Minister May’s new Brexit deal, but holding onto a positive technical tone.
  • Again, depending on the outcome today, we have further votes over the next two days on a “no deal” Brexit and to extend the Article 50 leaving date.
  • Again, as in yesterday’s report here we focus on the GBPUSD Forex rate.

 

GBPUSD risks just stay to the upside into next key Brexit votes

A selloff before and through the first key Brexit vote Tuesday, but the rebound from above the 1.2947 key swing low and the 2019 up trend line hang onto positive forces from Monday’s surge through multiple resistances, just keeping risks higher into another key Brexit vote Wednesday.

We see an intermediate-term range as 1.3350 to 1.2771.

For Today:

  • We see an upside bias for 1.3150; break here aims for 1.3243, 1.3289 and maybe key 1.3350.
  • But below 1.3051/50 opens risk down to 1.3004, maybe 1.2947.

 

4 Hour GBP/USD Chart

gbpusd


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Current Market Analysis
Euro breaks down, GBPCAD threatens upside

US Dollar Index holds support and rebounds EURUSD seeds multiple negative signals, downside risks GBPUSD sends buy signal GBPCAD sets up more bullish AUDUSD negative and USDCAD buy signal USDTRY and USDBRL surge

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