Sterling struggles to nurse wounds

20 May, 2019

The return of domestic political turmoil in the United Kingdom has led to a flurry of selling momentum for the British Pound, which fell over 300 pips during the previous trading week. 

The selling momentum has returned once again in the early hours of Monday morning and the newsflow circulating around UK Prime Minister Theresa May needing to state her leaving date coupled with Labour Leader Jeremy Corbyn stating Brexit discussions have broken down makes it doubtful for buyers to be tempted back into the GBPUSD. 

Taking a look at the technical picture, the GBPUSD remains firmly bearish on both the daily and weekly charts. There have been consistently lower lows and lower highs while the MACD has crossed to the downside. The solid weekly close below 1.2820 has opened the doors towards 1.2700 and 1.2620 in the near term.

EURGBP lifted by political drama 


British Pound woes over UK Prime Minister Theresa May potential departure date to be announced plus the documented breakdown in Brexit negotiations with the Labour party has led to the EURGBP breaking above 0.8750. The pair has hit a three-month high at 0.8770 and further Pound negative positions will be seen as the impetus for prices to venture towards levels not seen since January 2019 above 0.8850.

Bulls are clearly in control on the daily charts with 0.8750 acting as significant support that could promote further upside. The weekly close above this point signals a move higher towards 0.8800 in the short to medium term.

GBPJPY bears greedily eye 140.00


Weakness in the Pound combined with the safe-haven status allure of the Yen in light of the escalation in US-China trade tensions has been a trader’s dream for selling the GBPJPY. 

The GBPJPY has dropped 500 pips over the past two trading weeks, and more woes to come for the Pound suggest that there is further weakness in the pair yet. Focusing on the technical picture, the pair is heavily bearish on the daily charts. A solid daily close below 140.00 may open the flood gates with the first key levels of interest around 138.60 and 138.00, respectively.


Source link   Presented by FXTM

GBP/USD remains capped below 1.2600

Manages to recover on broad USD weakness, weaker US rates. Bearish bias intact amid dovish Carney's speech and weak UK fundamentals...

GBP/USD remains vulnerable

The GBP/USD pair traded with a mild negative bias for the third consecutive session on Friday and extended this week's rejection slide from...

GBP risks losing further 5%

Now that United Kingdom traders are returning back to office following a public holiday, we should expect for the fallout from the Brexit Party's...


GBP/USD clings to recovery gains

A modest USD pullback from two-year lows helped bounce of multi-month lows. The recovery got an additional boost following the release of UK...

Pound went below 1.27 on Brexit fears

The British Pound descended deeper into the abyss this morning with prices falling below $1.27 for the first time since January 2019 as uncertainty...

Sterling edges down

There were no surprises in the Bank of England's policy decision today to leave interest rates unchanged at 0.75%. The real surprise was the bank...


Pound awaits latest Brexit outcome

With 2 days to go before the EU summit regarding Brexit developments, time is running out for the UK government to come up with a solution to break the...

Rebound appears capped near 1.3200

GBP on the back foot as Parliamentary is set to vote on alternative Brexit options. Awaits fresh Brexit clarity while May’s future also remains a key decisive...

Market sentiment stabilizes

The mood across Asian markets improved this morning, amid easing concerns about the global economy and a possible recession in the United States...

  


Share it on:   or