KeownArcher
Short

GBPUSD - Cable preparing for a new leg to the downside

FX:GBPUSD   British Pound / U.S. Dollar
Last night we had exciting movement from cable, seeing price bounce off a daily support/resistance region. The main catalyst being PM May's visit to Strasbourg yesterday where it was rumoured she had gained assurances from the EU. However, as of today it is evident she was unable to win over the Government & Members of Parliament, with the governments chief legal adviser giving a rather dovish statement and low liking to her BREXIT deal. A few of PM Mays own party members will reject her deal.This was a classic "Buy the rumour, sell the news" event. Members of Parliament are worried as the PM looks set to see a no deal outcome. Unless of course, the PM and her party alongside the ERG , DUP and majority of voters vote for the PM - which i highly doubt.

Back to technicals and we can see on the daily timeframe we had a couple of higher highs and higher lows. However, we have come close to a 3rd touch of the trend line due to last nights news, forming a new lower high. Fundamentals are currently respecting technicals as we've seen a rejection of the descending trend line and a ping off price ranging between the 78.6 / 88.6 Fibonacci regions. We also managed to come below the daily support/resistance marked in purple. Short term downside targets are 1.28600 and 1.27350 respectively. I expect a retracement to this purple resistance also laying in line with the 61.8 Fibonacci retracement region before seeing a leg to the downside, before creating a new lower low. This can be a great swing trade to capitalise on a no deal result before seeing a recovery of the GBP.

As always, risk management is key. Market manipulation and volatility is expected in these times of uncertainty and volatile news event times should be noted!
Thanks for reading, if you have an questions hit me up on instagram.

Instagram : keownarcher
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out