Market Cap:
$262.6B
BTC Dominance:
67.42%
btc:
$9912.65
eth:
$209.09
xrp:
$0.27
Advertise
Forex

GBPUSD analysis - British pound weakens below mid-1.2600s

Squared Direct | May. 29, 2019
GBPUSD analysis - British pound weakens below mid-1.2600s

May 29, 2019, | SQUARED DIRECT - The British pound fell yesterday as Brexit uncertainty prevailed after the opposition Labour party leader Jeremy Corbyn backed the second referendum. Moreover, the quarterly results of the Confederation of British Industry (CBI) showed poor numbers for the service sector companies in the UK, adding more pressure on the Sterling.

The market sentiment was also dented by the US and China continuous war of words as the global barometer of risk sentiment, the US 10-year treasury yield, slipped further below October 2017 lows. Today, the light macroeconomic calendar will allow traders to look for a fresh catalyst from either Brexit or the US-China trade dispute.

GBPUSD technical analysis

The British pound touched the 1.27 resistance level yesterday and fell as expected but the bulls manage to find support at 1.2650 and form a base just above it. With enough momentum, the buyers could challenge the 1.27 level, which is also the 50-day moving average, and potentially break above it. The bears, however, need to break below 1.2650 to regain full control and push the Cable lower towards the recent lows 1.26.

GBPUSD analysis, British pound weakens

Support: 1.2650 / 1.26
Resistance: 1.27 / 1.2750

Disclaimer

Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves a high level of risk. Therefore, Forex and CFDs may not be suitable for all investors because it is possible to lose all invested capital. Only invest with money you can afford to lose. Before deciding to trade, you need to ensure that you understand the risks involved. Seek independent advice if necessary. Please refer to our Risk Disclaimer.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.