Forex update: Will a Miracle Save the British Pound (GBP)?

By Dmitriy Gurkovskiy, Chief Analyst at RoboMarkets

The British Pound is trading near its highs against the USD early this week. With Brexit issues sweeping the markets, this may seem quite strange.

An EU summit is being held Thursday, where British Prime Minister Theresa May will participate. However, she’s got to first resolve internal issues within her own Parliament. The latter has rejected her Brexit deal twice, and only a miracle may now help politicians arrive at an agreement. May has got only three days to pitch her major argument: if no deal is achieved this time, the UK will have to participate in the European Parliament elections in May, which will only complicate matters.

Whether this point is going to work is questionable, as Parliament did not even react to the more terrifying data, i.e. the costs and consequences of no-deal Brexit.

The ascending trend is still here to stay for GBPUSD; however, the MACD is diverging. The price may get down to the support at $1.3050 as well, while the rising move target lies at around $1.3500.

On H1, the GBPUSD is correcting after the Stochastic divergence. Currently, the major support at 38.20% Fibo is being tested. The next negative pullback landmarks may lie at 50%, or $1.3170, 61.80%, or $1.3120, and at 76%, or $1.3061.

Disclaimer

Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

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Having majored in both Social Psychology and Economics, I went on to continue my education in post graduate. Later I worked as a team lead of a tech and fundamental analysis lab in the Applied System Analysis Research Institute. This helped me to acquire all necessary skills and experience to become a successful trader and analyst, as well as a portfolio manager in an investment company. I'm a pro in the financial field and the author of articles for various international media. I also hold the position of Chief Analyst at RoboMarkets.