Sterling Q4 Technical Analysis - Volatile Times Ahead
- Will the current Brexit deadline on October 31st change again?
- GBPUSD currently capped by near-term resistance.
Sterling continues to be influenced by the ongoing Brexit story as Remain and Leave battle to take control of proceedings. While this continues – and it seems likely to continue for some time yet – there is little chance of a sustained move in Sterling-pairs. However, this doesn’t mean a lack of price action as pockets of volatility will appear as headlines and rumours hit the street. The use of technical analysis will aid Sterling traders in the coming weeks and months.
GBPUSD remains technically stuck as we start Q4 as fundamentals continue to drive price action. GBPUSD has bounced off the September 3rd ‘spike low’ and this level should only come back into play if the UK leave the EU without a deal at the end of October, or in the event of a Labour-led government. Any ‘soft-Brexit’, or if the EU and the UK agree a further extension, may see the pair push higher, but gains will likely be marginal. The recent breaking of a series of lower highs has given GBPUSD stability in the short-term and chart levels should be watched closely as we head into an unpredictable few weeks.
GBPUSD Price Daily Chart (March – October 4, 2019)
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