Brexit deal hopes sees GBPUSD break 1.30

  • The Pound has stayed strong on global Forex markets, despite disappointment at the weekend, with the so called “Super Saturday” not so “Super” as the Government failed to progress its new Brexit deal with the EU.
  • However, the new Brexit deal just seems on course to be pushed through Parliament before the 31st October deadline, whilst the threat of a no deal having been eased as the Government has sent a letter to the EU asking for an extension beyond the end of October.
  • In addition, the US Dollar stays weakened, partially due to global financial markets continuing to express a “risk on” theme, with positive soundings on US-Sino trade talks, plus the Brexit deal progress, with equity markets higher.
  • The weaker Dollar has reflected weakness both due to its safe haven role with the positive global backdrop, alongside the expectations of another 2019 rate cut from the Fed, with US data deteriorating recently.
  • The combination of these factors has pushed GBPUSD up through key 1.3000.

GBPUSD: Bull trend extension

A Monday rebound to overcome the 1.2990/3000 holding and rebounding from just above our 1.2869 support (from 1.2871), to resume upside forces from last Thursday’s erratic session that saw a dip and rebound from new 1.2756 support, 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 1.3013; break here aims for 1.3047 and 1.3081 and maybe even 1.3131.
  • But below 1.2911 opens risk down to 1.2871/69, maybe towards 1.2814 and 1.2756.

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

Comment on this video

Your email address will not be published.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

Latest Related News

Pound hangs onto a positive outlook into U.K. Employment report (GBPUSD forecast)

An erratic tone and a slight dip lower for the Pound against the US Dollar from the end of last week to start this week.But the more recent move Monday-Tuesday has been more a reaction to US Dollar strength after a modest “risk off” tone overnight after Apple (AAPL) warns on coronavirus impact.We still see a positive bias for GBPUSD from last week’s U.K. Cabinet… Continued

Riskier assets stay strong, as coronavirus fears ebb

As we highlighted in last week’s Macro Watch, global financial markets remain fully focused on the coronavirus.Although markets remain on edge, the underlying theme of “risk on” continues to dominate, although punctuated by brief spells of “risk off” with quick, usually brief corrective moves.This was best highlighted last week when during an erratic 24-36 hours for financial market assets, we saw a shift back to… Continued

Pound vulnerable to renewed losses (GBPUSD forecast)

The GBPUSD Forex rate has been probing higher in a corrective recovery theme this week, with slightly better data coming through on the U.K. economy.However, prior bearish technical signals still leave GBPUSD vulnerable to further losses into this week.   GBPUSD day trade outlook: Negative tone  A Tuesday-Wednesday rebound above 1.2969/79 resistances, but then stalling from below 1.3010 (from 1.2991), thereby holding onto negative forces from the… Continued

Euro approaches major support zone (EURUSD)

EURUSD bearish and aims at key supportAussie breaks down (AUDUSD)Cable bear signal  (GBPUSD) Continued

Pound poised for a more negative shift (GBPUSD forecast)

The US Dollar has been broadly firm throughout the latest shift to a “risk on” theme for global equity markets through this week, for the start of February.This has seen GBPUSD accelerating, then grinding lower, particularly with mounting concerns regarding the difficulties that are posed by the trade negotiations with the EU, in a post-Brexit world.The threat into today’s always much watched US Employment reports,… Continued

Forex Brokers in your location