Sterling (GBP) Price and Latest Brexit News
- Sterling remains weak as Brexit fears increase.
- GBPUSD ticks higher but resistance likely to hold sway.
- Client Sentiment remains bearish.
GBPUSD Gains Set to be Capped
UK PM Theresa May is set to put a ‘new, bold offer’ to Parliament next month in an attempt to break the current Brexit gridlock, but according to newspaper reports this offer is already set to fail as it does not contain any new way of solving the Northern Irish backstop problem. And PM may’s week looks set to get worse with the new Brexit Party, headed by Nigel Farage, set to trounce both Conservative and Labour at the European Elections (May 23-26) according to a new Daily Telegraph poll.The new Brexit Party is averaging around 32%, compared to Labour at 21% and the Conservatives at 11%.
Daily Telegraph European Election Polling Intentions
Against this negative backdrop it is difficult to see GBPUSD rising appreciably higher. The pair have opened in positive territory today after a two-week sell-off that saw cable fall from 1.3180 to 1.2714, with short-sellers likely taking profits, but further upside will find resistance from 1.2773 all the way through to 1.2894, the 23.6% Fibonacci retracement level. The January 15 ‘spike low’ at 1.2669 is the next level of horizontal support and this may be aided by the market current ly being in oversold territory, using the CCI indicator.
GBPUSD Daily Price Chart (August 2018 – May 20, 2019)
Retail traders are 80.4% net-long GBPUSD according to the latest IG Client Sentiment Data. See how recent daily and weekly positional changes affect GBPUSD and currently give us a stronger bearish contrarian trading bias.