Pound strengthens on Brexit deal hopes into first key vote

Intermediate
  • A very strong rally by the Pound on Monday, with rumours and soundings of some breakthrough in Brexit negotiations.
  • Today sees the first vote on Prime Minister May’s likely new Brexit deal and depending on the outcome, potentially further votes over the next two days on a “no deal” Brexit and to extend the Article 50 leaving date.
  • Sterling has rallied strongly across major currencies in FX markets, but here we focus on the GBPUSD Forex rate.

 

GBPUSD risks shift to the topside into first of key Brexit votes

A late session surge Monday through multiple resistances to probe as high as our 1.3286 level (up to 1/3289), after an initial plunge lower to probe below key 1.2967 for an intermediate-term shift to neutral, flipping risks higher into another key Brexit vote Tuesday.

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

For Today:

  • We see an upside bias for 1.3249; break here aims for 1.3289 and key 1.3350.
  • But below 1.3184 opens risk down to 1.3123, maybe 1.3066.

Intermediate-term Range Breakout Parameters: Range seen as 1.2771 to 1.3350.

  • Upside Risks: Above 1.3350 sets a bull trend to aim for 1.3473 and 1.3608.
  • Downside Risks: Below 1.2771 sees a bear trend to target 1.2668 and 1.2437.

 

4 Hour GBP/USD Chart

gbp/usd chart

 


Latest News

usdjpy
Yen stays strong in risk off scenario

Last Friday’s very weak German Manufacturing Purchasing Managers’ Index data was another blow to the global economic backdrop, with concerns throughout this year of a global slowdown in China, through Asia Pacific and increasingly also in Europe. This has seen riskier asset classes come under negative forces over the past week into latter March, with … Continued

Euro vulnerability

A Euro plunge in the latter part of last week, on Friday driven by very weak German Purchasing Managers’ Index data. Furthermore, the US Dollar has seen broader strength again on Thursday-Friday against many major currencies, after US$ weakness was seen immediately after a far more dovish Federal reserve at their meeting on Wednesday. This … Continued

EURUSD Still stumbles at the 200-day MA

The Euro was the weakest currency on Friday The EURUSD cannot break above to 200-Day Moving Average There may a small bounce on Monday morning As European slides into recession EURUSD will fall to 1.1000 The 200-day moving average (200 DMA) has continued to prove a stubborn barrier to the upward path of EURUSD. This … Continued

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

Leave a Reply

Your e-mail address will not be published. Required fields are marked *


Forex Brokers in your location