- The Pound remains under negative pressures in February, with threats of a potential No Deal Brexit growing, since the firm rally in January which was partially driven by a perception of a move away from this scenario.
- The Government faces another series of votes today, which leaves Sterling vulnerable again to further downside pressures.
- Here we focus on the GB Pound versus the US Dollar, GBPUSD, which is sat just above a significant technical support area and is also being encouraged lower by a strengthening US Dollar in the light of ongoing global economic slowdown concerns.
GBPUSD ongoing threat down to key 1.2831/29 support
A Wednesday probe just above 1.2939 resistance, but the n a failure from just above here and from below better resistance at 1.2996 (down from 1.2959), to reinforce Tuesday selloff to hit the top of the key 1.2831/29 area and downside forces from the earlier February plunge through the 2019 up trend line, to keep risks lower into Thursday.
We see an intermediate-term bullish outlook, BUT risk is now for a switch back an intermediate-term neutral theme below key 1.2831/29.
- We see a downside bias for the key 1.2831/29 area; break here aims for 1.2771 and maybe 1.2720.
- But above 1.2939 opens risk up to 1.2996.
Intermediate-term Outlook – Upside Risks: We see an upside risk for 1.3175.
- Higher targets would be 1.3299 and 1.3473.
- What Changes This? Below 2831/29 shifts the outlook back to neutral; through 1.2668 is needed for a bear theme.
4 Hour GBPUSD Chart