Pound weakens ahead of another key Brexit vote

Intermediate
  • In our report here on  Wednesday 27th March we highlighted a resilient tone for GBPUSD ahead of the indicative Brexit votes that evening.
  • As we arrive today at 29th March, the previous Brexit deadline date, we stand ready for ANOTHER, third vote on Prime Minister Theresa May’s Brexit deal.
  • Although this deal received a boost earlier this week, as both Jacob Rees-Mogg and Boris Johnson have indicated they are willing to vote for her deal (albeit reluctantly), the Northern Ireland, Democratic Unionist Party (DUP) are reluctant to give it their support.
  • At the moment, it appears unlikely that PM May’s vote will pass and this has seen the Pound fall over the past 24 hours.
  • Here we again focus on GBPUSD.

GBPUSD Bias switches lower

A plunge Thursday through supports at 1.3149/41 and to reject the recent resilient consolidation, switching risks lower into Friday.

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

For Today:

  • We see a downside bias for 1.3033; break here aims for 1.3004/03, maybe towards key 1.2947.
  • But above 1.3110/12 opens risk up to 1.3169.

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 GBPUSD Chart

GBPUSD Chart

Comments on this analysis


Latest News

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

Current Market Analysis
Market Turning Points – 2019-07-15

Current Position of the Market SPX: Long-term trend – Finallong-term phase on the way?  How much longer, is the question. Intermediate trend –  The continued strength has muddied the water and we may have to wait until August/September before the intermediate trend becomes more clear. Analysis of the short-term trend is done on a daily … Continued

Forex Videos
Fed Causes Dollar to reverse

Negatives for the Dollar lead to positives on Euro Pound hits major downside target perfectly Negative for Dollar Yen but profit target close Kiwi breaks up Fresh yearly lows for Dollar Cad


Forex Brokers in your location