GBP/USD: Cable Starting Week with Consolidation

pound-sterling-sign

By Dmitriy Gurkovskiy, Chief Analyst at RoboMarkets

The British Pound is rather neutral against the USD on Monday morning. The key highlight for market players is still the Brexit talks and everything relating to them. The United Kingdom is scheduled to leave the European Union in a month.

The chief EU negotiator Michel Barnier believes that there is no sense in extending the Brexit deadline. According to his opinion, the time has come to make a decision and both parties have to take responsibility for it. Mostly, it is about the United Kingdom – the Brits have to realize all consequences of their democratic decision taken in 2016 by means of the popular referendum.

As expected, the European Union wasn’t too happy to renew negotiations with London. Further negotiations are necessary to avoid “tough” Brexit scenario, that’s why they are pretty inevitable. However, the EU seems to be rather pessimistic.

On top of that, rumor has it that the United Kingdom and the European Union are going to require more time to round off talks. It doesn’t meant that the Brexit will not happen on March 29th, but a high probability is that there will be a lot of information and news relating to the Brexit in the weeks to come.

After testing the support line of the actual channel, GBPUSD started is forming another ascending impulse. In the short-term, the pair may fall towards the support line and level of 1.3013, which is confirmed by MACD indicator. After testing the support level, the instrument may resume growing to reach the target at 1.3216. This target is the current high and after reaching it, the pair may start a new pullback.

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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.

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.