Pound stays firm on Brexit deal hopes (GBPUSD)

  • Positive soundings last week on Thursday from talks between the UK and Ireland and then Friday between the UK and EU regarding a possible Brexit deal breakthrough have assisted global stocks higher and a stronger Pound.
  • GBPUSD surged from 1.22 to 1.27 on Thursday-Friday.
  • Concerns regarding a breakthrough over the weekend saw Sterling dip on Monday, but then further positive signals later into the session have seen GBPUSD rebound and keeps risks higher for this week’s key Brexit Summit.

GBPUSD: Upside risk intact, despite a setback

A Monday setback below 1.2589/88 and 1.2543/42 Friday supports, but then a firm intraday rebound and whilst above 1.2514 we still see upside forces from the Thursday-Friday surge through key 1.2582 swing resistance from September, to keep risks higher for Tuesday.

The impulsive advance through 1.2413 saw us shift our intermediate-term view to bullish.

For Today:                                              

  • We see an upside bias for 1.2650; break here aims for 1.2707, 1.2735, 1.2784 and maybe 1.2814, 1.2852 and 1.2916.
  • But below 1.2514 opens risk down to 1.2486, maybe 1.2404.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 1.2784.

  • Higher targets would be 11.3000 and 1.3176.
  • What Changes This? Below 1.2193 shifts the intermediate-term outlook straight back to a bear theme.

4 Hour GBPUSD Chart


Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comments on this analysis

Your email address will not be published. Required fields are marked *

Latest Related News

The Forex Zone Forecasts – A solid US Dollar tone with risk on theme

The US Dollar has remained firm, though slightly hesitant driven by positivity from the US-Sino trade talks and upbeat comments from various Fed speakers on the US economy. The Forex Zone looks at day trade possibilities and forecasts for the major Forex rates; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY. EURUSD: Prod at key 1.0989 A Thursday prod just below key 1.0989 for an intermediate-term shift to… Continued

GBPUSD Forecast – Upside bias

A Thursday rebound to reject the minor Wednesday setback that held above the 1.2815/1.2799 support area, to retain upside forces from Monday's surge up through the November down trend line and also 1.2832 and 1.2878 resistances, to leaves risks higher for Friday. We see an upside bias for 1.2898; break here quickly aims for 1.2917 and maybe notable 1.2976.But below 1.2815/2799 opens risk up to 1.2768, maybe 1.2749. Intermediate-term… Continued

Pound surges after Brexit Party “stands down”

The spotlight shifted to the UK on Monday, where general election politics had a significant impact on the Pound.Nigel Farage stated that the Brexit Party would not put candidates up for election in those parliamentary seats that were won by the Conservative Party in 2017.This is seen as a positive for the Tories, as it means that the Leave vote will not be split in… Continued

The Forex Zone – US Dollar strength resumes

The US Dollar has seen a strong recovery over the past week in reaction to the early November publication of the October US Employment report, which was very robust. The recovery has been assisted by broadly positive news flow from the US-China trade talks. The Forex Zone spotlights day trade views for the major Forex rates; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY. EURUSD: Downside… Continued

GBP in focus into the Bank of England Meeting

The macroeconomic spotlight Thursday is on the Bank of England Meeting and no changes in interest rates are expected.Financial market participants will focus on the any change in tone given shifts in UK economic political backdrop with the calling of a general election since the last meeting. The US Dollar has stayed firm this week as US Treasury Bonds moves to higher yields has encouraged… Continued

Forex Brokers in your location