GBPUSD hits Friday’s high and pullsback in Asia.
- Brexit headlines continue to drive false hope in the GBP/USD, sparking half-hearted bull runs.
- PMI Monday could showcase growing signs of economic slowdown across both continents.
The GBPUSD is trading near the 1.3000 handle but to the downside heading into Monday’s London market session, with little data on the docket and plenty of Brexit headlines going in both directions, and investors will have their hands full chewing through layers of rhetoric on EU -UK divorce proceedings.
UK’s PM May odds of Irish border deal “50-50” – The Guardian
Brexit headlines over the weekend teased that a previously-unknown Brexit deal between the UK’s Prime Minister Theresa May and EU leaders in Brussels was due to be revealed this week were quickly found to be nothing more than speculation, and Pound bulls, which initially opened the trading week pushing the Cable into a 50-pip bullish gap were quickly found falling back away as Brexit negotiations continue to go nowhere quickly, and headlines continue to run the gamut from the fearful to the hopeful and back again.
Data is thinly-spread for Monday, with only Markit PMIs spread throughout the day, with the UK’s Services PMI for October due at 09:30 GMT (forecast 53.3, last 53.9), and the US Composite and Services PMIs for October due at 14:45 GMT, forecast to come in at 54.8 54.7 respectively, in-line with their previous readings.
The pair is trading at 1.29860 above the EMA 50 on H4 Chart as of writing. RSI headed south.The price is entering into the Ichimoku Cloud.
1.30600 resistance keeps its importance and the bearish pressure will remain as long as the pair hold below 1.30600.
We have a running short position and we will keep you updated with the fresh setups.
Key Levels of the Day:
Upside: 1.30000 – 1.30600 – 1.31200
Downside: 1.29400 – 1.28800 – 1.28320
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