Reflecting on the first quarter of 2019 today as we approach the end of March and taking a look at one of the currency pairs that has dominated news wires and trading desks alike, that is, of course, Cable (GBPUSD).
2019 has seen the tumultuous asset trade from lows of 1.2441 all the way to highs of 1.3381, although it may not be the most aggressive rally or the longest it is of significant importance because it displays the market's attitude towards Brexit and the ongoing negotiations.
The push higher shows that the markets have somewhat priced in the majority of the downside risk as odds of a No-Deal outcome have wained.
On the technical front, we have come up against some resistance at the 1.3350 level (Feb 27 high) as can be seen by the orange horizontal line. The market tried to push above that level but lacked the momentum to close above and hold onto the gains.
Price drifted lower after that and found some support on both the weekly pivot S1 at 1.3032 along with the bullish supporting trendline that has formed since the low at the start of the year.
With Sterling volatility pushing higher as well, we can expect to see some significant moves as we get closer to the now revised deadline of May 22nd.
Personal bias remains long for Cable, however being constantly harrowed by Brexit news means you can expect to see this bounce about significantly, pick your entry carefully and be prepared to see some negative P&L
GBPUSD
2019 has seen the tumultuous asset trade from lows of 1.2441 all the way to highs of 1.3381, although it may not be the most aggressive rally or the longest it is of significant importance because it displays the market's attitude towards Brexit and the ongoing negotiations.
The push higher shows that the markets have somewhat priced in the majority of the downside risk as odds of a No-Deal outcome have wained.
On the technical front, we have come up against some resistance at the 1.3350 level (Feb 27 high) as can be seen by the orange horizontal line. The market tried to push above that level but lacked the momentum to close above and hold onto the gains.
Price drifted lower after that and found some support on both the weekly pivot S1 at 1.3032 along with the bullish supporting trendline that has formed since the low at the start of the year.
With Sterling volatility pushing higher as well, we can expect to see some significant moves as we get closer to the now revised deadline of May 22nd.
Personal bias remains long for Cable, however being constantly harrowed by Brexit news means you can expect to see this bounce about significantly, pick your entry carefully and be prepared to see some negative P&L
GBPUSD