GBPUSD News: UK PM Shuns Brexit Advice, Sterling Cagey
Sterling and US dollar:
- UK PM May presses ahead despite the threat of a no confidence vote.
- Sterling pulling back from last week’s sell-off.
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Sterling (GBP) Recovers from Last Week’s Lows but Doubts Remain
GBP opens the week on a mildly positive note, clawing back some of last week’s losses. The outlook for Sterling however remains clouded, especially as UK PM May continues to ignore any advice on the Brexit draft agreement which is highly unlikely to get through a vote in the House of Commons. Five senior Conservatives are said to have prepared amendments to the draft text over the weekend, but it seems that PM May will not heed their advice, prompting more calls for a vote of no confidence. The Prime Minister will speak at a CBI conference later today and will continue to push the draft agreement before she travels to Brussels this week to meet EU Commission President Juncker.
Sterling has pushed ahead in early turnover but is unlikely to rally further with Brexit uncertainty running sentiment. GBPUSD is also likely to be held in check by a stable US dollar. The dollar index (DXY) is trading just below 96.00 and the uptrend from the mid-April remains intact. GBPUSD trades at 1.2865 and needs to break initial resistance at 1.2922 before attempting to break the recent series of lower highs at 1.3175. To the downside, an area between 1.2695 and 1.2735 may provide support ahead of the multi-month low at 1.2662. GBPUSD remains below all three moving averages, while the RSI indicator is currently neutral.
We will be looking at Brexit, Sterling and a variety of other UK asset markets and drivers at our weekly
GBPUSD Daily Price Chart (April – November 19, 2018)
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