GBPUSD Price Analysis, Chart and Pivot Points
GBPUSD Price, Chart and Pivot Points:
- Brexit bad news is being priced-out or ignored.
- Pivot points can identify short-term targets.
GBPUSD is now touching levels last seen in July 2018 as investors continue to price-out a Brexit No Deal ahead of tonight’s Parliamentary meaningful (non-binding) vote. Sterling traded around 1.2770 just under two weeks ago and has marched steadily higher since then, adding a dash of volatility into the pair. A look at the resistance and support levels, based on classical pivot point analysis, shows R1 around 1.3322/24 now under threat, leaving R2 at 1.3386/88 the next target. The RSI indicator on the hourly chart does warn that the pair is in overbought territory.
You can access live pivot point data for a wide range of currencies and assets HERE. If you then click on your chosen currency pair you will be taken to a more in-depth landing page for your chosen asset class.
Brexit is once again the driver of the pair with recent statements from PM May being interpreted as Sterling bullish as the chances of a No Deal Brexit, either by a vote of by the clock running down, recede. The next 2-3 weeks will probably see a final outcome – there are, currently, three sets of votes before March 14 – and GBP will continue to forge higher if either PM May’s bill is passed – it may still need some flexibility from the EU to get through the HoC – or if an extension to the March 29 Brexit date is agreed.
GBPUSD Hourly Price Chart (February 19 – 27, 2019)
Retail traders are 43.0% net-long GBPUSD according to the latest IC Client Sentiment Data, a bullish contrarian indicator. Recent changes in daily and weekly sentiment however give us a stronger bullish contrarian bias for GBPUSD.
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