GBPUSD Price Outlook: Sterling Technicals Turning Positive
GBPUSD Price, News and Brexit Latest
- Sterling continues to price out a no deal Brexit and further gains may be on the cards.
- PM May turning Brexit as soft as possible.
GBPUSD Price – Technical Outlook
Sterling has been volatile of late with Brexit headlines again dominating market pricing. The latest move by UK PM Theresa May to ignore the wishes of her hardline Brexiter MPs and offer Labour party leader Jeremy Corbyn cross-party talks, have all but taken a no deal Brexit off the table now. It now looks likely that the UK will leave the EU with a softish-Brexit via a customs union or not the leave the EU at all, either by revoking article 50 or a second referendum.
This latest twist has pushed GBPUSD back above trend, fueling a bullish bias that may stretch all the way back up to the March high at 1.3382, the highest level seen since June 2018. Cable has broken back above the bull trend line from January 2 this year after trading below it over the last week and needs to consolidate and close above trend to re-start any further rally. GBPUSD has also broken back above the 23.6% Fibonacci retracement level at 1.3177 and above both the 20- and 50-day moving averages. The CCI indicator still has room to run before it flashes an overbought signal. To the downside, 1.3140, 1.3090 and 1.3000 will act as short-term brakes.
GBPUSD Daily Price Chart (May 2018 – April 3, 2019)
Retail traders are 66.8% net-long GBPUSD according to the latest IG Client Sentiment Data, a bearish contrarian indicator. See how recent daily and weekly positional changes can move client sentiment.
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