Pound stays strong

  • In our report earlier this week on the Pound we highlighted a fundamental strengthening of the UK currency amid rumours that UK Prime Minister Theresa May was going to discuss with the Cabinet a possible delay to the UK’s date for leaving the EU (currently 29th March 2019).
  • Further developments have seen the likelihood of extending the leave date increase, therefore, making a no deal Brexit less likely, which is positive for Sterling.
  • Furthermore, the GBPUSD or Cable forex rate has pushed above significant technical resistance levels at 1.3218 and 1.3299, which sets risks for the Pounds and GBPUSD still higher, see more details below.

GBPUSD intermediate-term bull shift reinforced

A surge higher again Wednesday now through a key 1.3299 peak, to reinforce Tuesday’s very positive price action through 1.3218 and 1.3258 resistances, to leave risk higher for Thursday.

The late February surge through 1.3218 set an intermediate-term bullish trend

For Today:

  • We see an upside bias for 1.3350 and 1.3363; break here aims for 11.3397 and maybe towards 1.3441.
  • But below 1.3231 opens risk down to 1.3140, which we would look to try to hold.

 Intermediate-term Outlook – Upside Risks: We see an upside risk for 1.3473 and 1.3608

  • What Changes This? Below 1.2967 shifts the outlook back to neutral; through 1.2771 is needed for a bear theme.

4 Hour Chart

GBPUSD Chart 2019-02-28

Latest News

nikkei 225
Global equity index vulnerabilities

Global financial markets continue to react negatively to global trade war concerns. Asian, European and US equity averages have all rolled back lower this week into late May, damaging rebound effort made from mid-May. This sets the immediate risks lower and starts to resume the negative tone set during the significant selloff in the first … Continued

USDNOK and EURNOK mixed short-term outlooks

USDNOK retains a positive short-term tone within a broader, intermediate-term range. EURNOK has a negative short-term bias, also in a neutral, intermediate-term environment. This tells us more about EURUSD than anything else, that the risks for EURUSD are to the downside. USDNOK upside threat A resilient consolidation for much of May, digesting the later April-early … Continued

Dow Jones
US equity averages cling to a positive tone

A consolidation theme has emerged for the major US (and in fact European) equity averages over the past 1-2 weeks, with no significantly new bad news emerging from the ailing US-Sino trade negotiations. This has allowed equity markets to rebound and ease bear forces from the aggressive selloffs seen in the first half of May. … Continued

USDPLN breaking out for renewed bullish theme

Another push higher Tuesday and again into Wednesday, reinforcing the previous tentative breakout from the Ascending Triangle pattern above 3.8594 and 3.8644 resistances, leaving both short- and intermediate-term bull themes intact and aiming higher for Wednesday. The intermediate-term outlook is bullish, sustained by 2019 solid consolidation above the 38.2% Fibonacci retracement of the 2018 rally. … Continued

Forex Brokers in your location