1. Technical Overview
The GBP/USD broke away from the downward sloping trend in a 1-hour chart and appreciated strongly to 1.3085 level. Technical oscillators are pointing to the upside with the Relative Strength Index moving to overbought territory and Slow Stochastics already in the overbought territory. The key area of resistance is at 1.3085 representing 23.6% Fibonacci retracement of Sterling from 2018 high of 1.4377 to 2018 low of 1.2662. With a move above 1.3100, the golden cross formation on a daily chart, the crossover of a 50-day moving average and a 100-day moving average, indicating further move toward 1.3175 and 1.326
2. Fundamental Overview
The GBP/USD rose to a fresh 2-week high of 1.3085 as market is filled with contradicting Brexit headlines on Brexit optimistic weekend headlines and hopes for the UK to finalize the financial services deal this week. With the GBP/USD above 1.3050, a 50-day moving average and a 100-day moving average are approaching indicating possible golden cross, a major moving averages crossover indicating further upside.
The UK Trade Minister Liam Fox said the Brexit deal must be a solution for whole of UK with a separate deal to treat Northern Ireland being unacceptable. The Trade Minister´s statements set the tone ahead of May's meeting with Cabinet ministers later on Tuesday that is likely to focus on the most important topic of the Irish border backstop. The proposal of a time limited backstop looks unacceptable for now so the European officials will need to find another workaround unless concessions are made.
The GBP/USD broke away from the downward sloping trend in a 1-hour chart and appreciated strongly to 1.3085 level. Technical oscillators are pointing to the upside with the Relative Strength Index moving to overbought territory and Slow Stochastics already in the overbought territory. The key area of resistance is at 1.3085 representing 23.6% Fibonacci retracement of Sterling from 2018 high of 1.4377 to 2018 low of 1.2662. With a move above 1.3100, the golden cross formation on a daily chart, the crossover of a 50-day moving average and a 100-day moving average, indicating further move toward 1.3175 and 1.326
2. Fundamental Overview
The GBP/USD rose to a fresh 2-week high of 1.3085 as market is filled with contradicting Brexit headlines on Brexit optimistic weekend headlines and hopes for the UK to finalize the financial services deal this week. With the GBP/USD above 1.3050, a 50-day moving average and a 100-day moving average are approaching indicating possible golden cross, a major moving averages crossover indicating further upside.
The UK Trade Minister Liam Fox said the Brexit deal must be a solution for whole of UK with a separate deal to treat Northern Ireland being unacceptable. The Trade Minister´s statements set the tone ahead of May's meeting with Cabinet ministers later on Tuesday that is likely to focus on the most important topic of the Irish border backstop. The proposal of a time limited backstop looks unacceptable for now so the European officials will need to find another workaround unless concessions are made.