Got a new face, it feels alright

As a big fan of horror I follow impatiently the new wave of political chaos in Britain. The destabilised UK government is entering into state of emergency. The PM Theresa May was hit by a double Cabinet resignation within 24 hours, losing both her Foreign Secretary and the chief Brexit negotiator. 

Last night Mrs May appointed Jeremy Hunt , ex Health Minister an her faithful slave, backer of soft Brexit as the new face of Foreign Secretary. And this is to reaffirm the faltering authority to carry out negotiations with Brussels. This turbulent political situation is again showing the unstable Europe’s island neighbour. 

This last release of Brexit drama I may label Cast the die of a leadership bid and will in all likelihood challenge the prime minister to seize the fruit of his ambition which devours him. 

Bad witch. New world. New times. Mutation. Feels alright. The Brexit dream is dying.

GBP/USD May and Juncker do not disturb much

GBP/USD rallied today to reach daily high at 1.3538, but the enthusiasm was fleeting as the pair dropped with over 80 pips. Pound bears were awaken following no agreement between UK and EU. The European Commission President Jean-Claude Juncker is still confident about an agreement that might be reached ahead of December 15th summit. And according to PM May, both sides are giving their best and are in good faith, so the progress has been made and there is common understanding on lots of issues.

From technical point of view, the pair is moving well above its 100-day and 200-day SMAs, that are keeping bullish stance, while the 20-day SMA, also bullish, is just two pips above the current price. Stochastic has retreated from the extreme negative territory and is displaying strong bullish momentum. RSI is located around its mid-line and seems that has lost directional strength. 

The GBP/USD is favoring a new leg higher if breaks the 1.3505 level and then on focus will be 1.3550. On the other hand, the pair remains vulnerable around 1.3420 area and in case bears fight it, next target will be 1.3380.