GBP/USD Daily Price Forecast – Breaking 1.3220 Resistance Level on Third Attempt
The GBP/USD pair continued its last week’s downward rally from major 1.3228 resistance level to the beginning of this week. Even though the cable tried to show some revival by bouncing off in the morning session, it failed to come up strongly. The Cable held the support level of 1.3166 at 07:30 GMT jumping to 1.3218 level. The GBP/USD pair’s trend got cooled down after two hours amidst Brexit chaos and overall negative market sentiments.
The GBP/USD pairs movement since today’s morning depicts that the investors (both the buy side and sell side) seemed to be confused about what stand needs to be taken, considering the uncertainties over a Brexit deal.
The Cable followed specific trading patterns during the day. The GBP/USD pair formed the Engulfing Bullish pattern at 11:45 GMT taking the pair near 1.3225 level. The Three Outside Up pattern fostered the further upward movement breaking the resistance level of 1.3234.
Technical Overview
After trying to break off the resistance level of 1.3220 thrice during the last trading session, the cable successfully broke the resistance level creating fresh highs for the day. The GBP/USD pair is trading above all the major Simple Moving Averages (SMA). These accumulate adding a bullish stance for the cable in the coming days, from the technical front.
May’s Prime Ministership On Bet
The pair jumped during the early UK sessions, following the latest Brexit reports. It was revealed that UK Prime Minister Theresa May is ready to step down from her dignitary position if the UK lawmakers agree to vote for her Brexit deal. Her quotation of Brexit deal also contains the details on the Irish Border backstop.
The senior lawmakers of the Prime Minister Theresa May’s own Conservative Party planned to coup her aiming to expel her from the current position. Collectively the Group remains dissatisfied with her approach on Brexit deal. Market participants feared the rising vagueness around Brexit as they believe the UK’s ruling party itself lacked unity among its members.
EU during the day announced in its press release that it had completed the preparations for a possible “no-deal” Brexit.
May had presented Seven amendments until now. MPs will be voting and discussing on the same by tonight at 22:00 GMT.
The cable is currently under colossal tension and is sensitively subjective to any Brexit updates coming up in the next few days.
As of writing this article (12:57 GMT), the GBP/USD was trading at 1.3231.
This article was originally posted on FX Empire
