Pound stays solid ahead of indicative Brexit votes

  • The UK parliament prepares for indicative votes later today (Wednesday 27th March, scheduled for the evening) as the 29th March initial Brexit deadline draws closer.
  • Parliament has scheduled 16 (yes, sixteen) options to choose from, increasing very short-term uncertainty.
  • Although the Pound remains hesitant in the short-term, the underlying tone remains solid versus both the US Dollar and Euro.
  • More recently on Tuesday, Prime Minister Theresa May’s Brexit deal received a somewhat unexpected boost as two Eurosceptic members of her own party (Jacob Rees-Mogg and Michael Fabricant) seemed to indicate they may be willing to vote for her deal, with few other options now available.
  • Our focus today on the Pound is reflected by the much-watched Forex rate versus the US Dollar, GBPUSD, commonly referred to in currency markets as Cable.

GBPUSD bias stays higher

A dip and a rebound from just above our 1.3149 support (from 1.3157) for another probe higher Tuesday (as on Monday) to prod above 1.3247/51 resistances, reinforcing last Friday’s dip and firm bounce from just below our support at 1.3087 (from 1.3079), leaving the bias higher into Wednesday.

The aggressive, mid-March advance through the late February peak at 1.3350 switched the intermediate-term outlook to bullish.

For Today:

  • We see an upside bias for 1.3261; break here aims for1.3311 and 1.3331, maybe to the cycle high at 1.3381
  • But below 1.3157/49 opens risk to 1.3079, maybe down towards 1.3004/03.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 1.3473.

  • Higher targets would be 1.3608 and 1.4000
  • What Changes This? Below 1.2947 shifts the intermediate-term outlook straight to a bear theme.

4 Hour GBP/USD Chart


Comments on this analysis

Latest News

Gold Chart
Golden Breakout: Potential for 1,486 for spot gold

We upgrade our neutral conviction on GOLD, mentioned in our prior post, to buy. Yesterday saw a solid 1.3% rise in XAUUSD on the back of a weaker USD, Middle East tensions and Ray Dalio comments. The precious metal broke above key 1,438.63 resistance and a consolidation pattern. A close near the top reinforces bull … Continued

GBPUSD Daily Chart
Elliott wave Analysis: GBPUSD On A Bearish Ride

Hello fellow traders! GBPUSD is looking bearish and can now be unfolding final stages of a sub-wave 3) of blue wave 1. We are observing minor leg 5 of 3) in progress, with possible support, and a turn into a corrective wave 4) around the Fibonacci ratio of 261.8 (1.235/1.223 region). GBPUSD, Daily On the … Continued

Forex News Category
Will Fed Easing Turn Out Like ’95 or ‘07?

You should completely understand that the market is dangerously overvalued and that global economic growth has slowed to a crawl along with S&P 500 earnings. However, you must also be wondering when the massive overhang of unprecedented debt levels, artificial market manipulations, and the anemic economy will finally shock Wall Street to a brutal reality. … Continued

Gold Futures
Gold Getting a Boost as Fed Expresses Concern

As the Fed indicate rate cuts are coming gold will keep rising over the summer  There is a disconnect between asset price inflation and the real economy  Earnings will be flat or disappointing and too much debt has little or negative yield  I last looked at Gold on May 26, 2019 when I called for … Continued

Forex Brokers in your location