Tuesday, 14 March 2017

The uncomfortable Tuesday

The House of Commons gave green light to the UK Prime Minister Theresa May, neglecting the amendments passed by the House of Lords and officially the divorce with the EU got started. 
Yesterday the Scottish First Minister Nicola Sturgeon announced that next week will apply for permission for conducting second independence referendum.
During Monday’s session the GBP/USD was trading uplifted and marked daily high at 1.2250 after had formed triple bottom. This level is of major importance as represents 23.6% Fibonacci retracement of latest February down slide and is acting as a resistance. Following the Brexit development today the pair couldn’t hold the line and dropped sharply towards 1.2105 area.
Technical readings on the four-hour time frame are showing bearish signs. The 20-day SMA is staying flat, while RSI and stochastic had turned to oversold area and are indicating very strong downward momentum. A recovery might only be seen only in case the pair fight the intermediate resistance located at 1.2150. Anyway currently GBP/USD is quite vulnerable and the key driver for the future months will be the Brexit development. 


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