23 January, 2017
Tomorrow, Tuesday 24 January, around 09:30 GMT, the UK Supreme Court will release the Brexit lawsuit Ruling, on whether the UK Prime Minister Theresa May will need the UK parliament’s approval to invoke Article 50 of the Lisbon Treaty, to leave the EU.
Last Tuesday 17th January, GBPUSD surged to a one-week high of 1.2415, which was the biggest intra-day rally since 2008. It was helped by Theresa May’s commitment on the UK parliament to vote on the final Brexit deal.
The price retraced after testing the near term major resistance level at 1.2400, where the 50 SMA converges.
However, this morning, GBPUSD broke the resistance at 1.2400, and hit a five-week high of 1.2471, as a result of the weakening of the dollar after Trump’s inauguration speech.
The tone of Trump’s speech was positive, yet the content emphasized on the concept of America first, which lifted market concerns on prospective US trade protectionism.
Furthermore, he didn’t talk much about fiscal stimulus and economic measures, which markets looked forward to hearing thus leading to a degree of disappointment.
Currently GBPUSD remains bullish holding above the 1.2400 level.
However, on the daily chart, it is trading below the short term major downtrend line resistance, where the 100 SMA converges. The selling pressure is heavy at that level.
The 4 hourly Stochastic oscillator is above 90, suggesting a retracement.
The UK Supreme Court’s final verdict will decide the next movement of Sterling. If the result is the trigger of Article 50 requiring parliament’s approval, then it will likely push Sterling up again.
The resistance is at 1.2460, followed by 1.2500 and 1.2530.
The support line is at 1.2400, followed by 1.2350 and 1.2300.
European stocks slid, following a retreat in Asia, amid growing concerns about a slowdown in China and policy makers steps to address it. The dollar advanced...
October was a brutal month not only for the U.S. IT-Companies. Crude oil prices also had significant and important shifts. After renewing the 4-year highs...
Chinese equities are developing a rebound on Friday, supported by the hopes for progress in China and the US trade negotiations. The telephone...
The U.S. dollar has returned to growth on the comments from the Fed officials about the need of further rates increases this year and next one. At the end...
The collapse of the Turkish lira spreads its toxic influence on the European and EM financial markets. Asian bourses have been losing more than 1% at Monday...
Financial markets rise on positive sentiments about earnings and China's fiscal stimulus. That pushed down the demand for USD, but more likely it is just...
The dollar index reached the one-year highs on Wednesday due to the demand for safe assets. USDX reached level 95.43 on Thursday, breaking the peak levels...
The FOMC minutes highlighted some increased risks to the US economy particularly concerning trade relationships but the view still holds that the Fed should...
UK Consumer Price Index (YoY) (May) is expected out at 2.5% against 2.4% previously. Producer Price Index â€“ Input (YoY) (May) is expected...