Cable Faces Showdown with Theresa May- Brexit Levels to Know

Talking Points

  • GBPUSD Recovery during risk near-term streamer into Brexit talks
  • Updated targets cancellation levels
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GBP/USD Daily Chart

Technical Outlook:Cable pennyless above a monthly open / opening-range highs final week, gripping a concentration aloft in a pair. A vicious insurgency connection is eyed aloft during 1.2675-1.2706 – this segment is tangible by a 23.6% retracement of a Brexit decline, a 2017 high, a 200-day relocating normal and a median-line fluctuating off a Oct 10/25 low. Interim daily support rests during 1.2417/33 where a 2016 low-day tighten converges on a 100-day relocating normal and a 50-line. Broader bullish cancellation rests with a monthly open during 1.2380.

GBPUSD 240min

GBP/USD 240min Chart

Notes: A closer demeanour during cost movement highlights a risk for a near-term pullback in a span as movement struggles only next a 70-overbought territory. Initial support rests during a weekly open during 1.2488 corroborated by 1.2433. From a trade standpoint, a evident risk is for a pullback off these levels though I’ll preference vanishing debility into a reduce together with a crack aloft eying a soothing aim during simple trendline insurgency off a Dec high (currently ~1.2640 a pivotal 1.2675-1.2706 threshold.

A entertain of a daily normal loyal operation (ATR) yields distinction targets of 23-27 pips per scalp. UK Prime Minister Theresa May is approaching to trigger essay 50-tomorrow, thereby starting a routine by that a nation will de-couple from a Eurozone. Added counsel is fitting with a recover expected to fuel increasing sensitivity in a wire crosses. Also keep in mind we are streamer into a tighten of a week, month entertain on Friday- stay nimble.

Relevant Data Releases

Cable Faces Showdown with Theresa May- Brexit Levels to Know

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– Written by Michael Boutros, Currency Strategist with DailyFX

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