• We forecasted that the GBP setting was bullish to go beyond hurdles last week. We still expect GBP to trade with higher volatility.
• The recent rally has laid the medium-term foundation, and further impulse may probably be provided by the mid-March 2019.
• Reports of delayed Brexit deadline is a hot topic, seems GBP buyers craving for Sun.

The pound moved sharply higher with breaking the key resistances on the news “Extending Brexit Deadline.” The fresh rallies of GBP crosses and against the USD are consistent, and we are long GBP against the basket of CHF, EUR, JPY, and USD.

UK Prime Minister Theresa May said Tuesday that she’d give Parliament a chance to delay Brexit.

Vox reported that “May told Parliament on Tuesday, February 26, that if an upcoming second vote on her Brexit deal fails, members of Parliament could vote to either leave the European Union without a deal on March 29, 2019 or seek a “short limited extension” to the deadline.”.

On the back of this news, the cable jumped to a four-week high, now focus on the nearest resistance 1.3300 above here 1.3360 exists.

Now we turn our focus on the other European currencies NOK and SEK with the G10 basket. We believe the deadline delay or clouds erase over UK’s uncertainty should benefit these currencies. Besides in majors EURUSD likely to claim further headroom if settles above 1.1400.

At the closing trading hours, the GBP was up 1.30% against CHF and USD followed by CAD and NZD by a percent. Against AUD and GBP was up by 0.90%.

FX insights:

  • GBPUSD: Resistance 1.3300 and 1.3360, run through the 1st target.

  • GBPNZD: Resistance 1.9285, it’s 50.0% fib reaction while traced out a triple top (so far). Above here 1.94050 are the next key barrier.

  • GBPJPY: pauses at the 20MA (monthly) above here 147.80, 148.40 and finally 149.70 could be possible. Run through the 1st target.
  • GBPAUD: Traced out a double top pattern (so far) at 1.8520 above here 1.8730 in focus.
  • GBPCHF: Run through the second target. The resistance between 1.3270-1.3300 above here 1.3330-1.3350 its 200MA (Weekly) are in focus. Overall, limited headroom in the near term but the medium term could expect 1.3440.

  • EURGBP: Support finds at 0.8550 its 200EA (Weekly) coincides with the 80.0 fib reaction.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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