GBP/USD enjoyed some upbeat PMI figures to recover but things became more complicated later on. The White Paper on Brexit, manufacturing production, and other figures await the pound. Here are the key events and an updated technical analysis for GBP/USD.
Contradicting reports about the government’s stance on Brexit move the pound back and forth as well as the PMI data. In the US, data was positive and fears about trade were subsided for a while.
GBP/USD daily graph with resistance and support lines on it. Click to enlarge:
* All times are GMT
GBP/USD Technical analysis
Pound/dollar kicked off the week in an upbeat mood, challenging the 1.3200 level mentioned last week.
Technical lines from top to bottom:
1.3615 capped the pair in late 2017. 1.3470 was a swing high in early June.
The round number of 1.34 could provide further support. Further down, 1.3315 was a swing high in late June.
1.3250 was a swing low in early June. Even lower, 1.3205 was the low point in late May. 1.3100 was a swing low in mid-June and 1.3050 is the latest 2018 low. The round number of 1.3000 awaits below
I remain bearish on GBP/USD
It is hard to believe that the EU will accept anything that the UK proposes. Even if they welcome the proposals, time is running out for Brexit and the UK economy is lagging behind the American one.
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