GBP/USD In Bearish Channel As Uncertainty Weighs on the British Pound

GBPUSD

GBPUSD Technical Analysis-Bearish Channel

 

  • Prime Minister Theresa got EU approval on Brexit deal
  • The challenge is now for the British Parliament to vote for it
  • GBP/USD in bearish channel as political uncertainty weighs on the Sterling

 

Overview


 

Theresa May’s success in getting her proposed Brexit deal approved by the EU is only partial as the Prime Minister must now persuade her Parliament.

 

The British Parliament needs to vote before Christmas. Any indications that the Parliament will back Theresa May could ease the pressure on the British Pound, while any contrary indications could weigh in more to the downside.

 

 

Technical Analysis


 

 

GBP/USD has been fluctuating inside a bearish channel during the last couple of weeks.Meanwhile, price action has crossed below the 20 moving average on the 4-hour chart.

 

If price closes below recent lows, the bearish trend could continue, whereas a break out above the upper channel line could reverse the trend.

 

Macros


 

A number of economic reports are set to be released during the week for both the GBP and the USD with the most important being:

 

GBP

  • Bank Stress Test Results – Wednesday 28th

 

USD

  • CB Consumer Confidence – Today 4:00 pm GMT
  • Prelim GDP q/q – Wednesday 28th 2:30 pm GMT
  • Fed Chair Powell Speaks – Wednesday 28th 6:00 pm GMT
  • FOMC Meeting Minutes – Thursday 29th 8:00 pm GMT
  • G20 Meetings – Friday all day
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