Wednesday 8 February 2017

GBP/USD Vulnerable Ahead Of The Final Vote

Ahead of final Brexit vote the GBP/USD pair remained in consolidation during today’s trading, but as the time nears, the bulls are showing persistence.Both Sterling and the US Dollar are finding fundamental challenges at the time being. The greenback is weakened by the Trump’s course of action and the GBP is experiencing the highly weighted pressure on Brexit development.
Technical indicators in the hourly chart are located within overbought area. RSI has turned to south, but is still above 50 level. The Stochastic displayed strong bullish momentum today, but currently is loosing momentum.
The 50-day SMA is placed around 1.2470 region and is acting as a support. If broken, next bears target is seen at 1.2400 handle. Looking to the upside the pair is facing first resistance at 1.2545 (the weekly highs) and next at the key level 1.2600. 
GBP/USD is quite vulnerable ahead of final vote on Brexit, but in the short-term this is the main driver that would set more clear direction for the pair. 



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