- Another week in bulls’ hands
- Brexit deal supports the bottom line
- Cautiously trade the headlines
The pound continues its northward journey for the third straight week amid Brexit deal lifts sentiment. Over the past seven weeks, relentless GBP buying and short-covering push the price above all daily moving averages, which hasn’t seen since mid-2018.
The cable rose 850+ points or 8.30% to 1.2875.
After casting an eye over the daily, weekly, and monthly charts, the key resistances located at 1.3000 and 1.3380, which is 1.50% and 4.50% respectively higher.
The current ongoing formation in the cable suggests an A-B-C pattern that has completed around 1.2850 levels in case of extension, the 161.8fe located at 1.3200.
Looking ahead, 1.2950-1.3000 will act as immediate resistance for the cable. A decisive break above 1.2950- 1.3000 could take the GBPUSD to 1.3380 key resistance level. On the downside, 1.2390 and 1.2190 will be the key support levels.
We favour buying GBP on dips
Volatility risk warning
We wish to highlight that this week the Forex market volatility could be higher than usual due to the ongoing Brexit negotiations between the UK government and the EU.
On Thursday 17th October a crucial 2 day summit of EU leaders will begin and on Saturday 19th October there will be an extraordinary sitting of the UK Parliament.
We strongly recommend to closely monitor your open trades and in particular those on GBP and EUR crosses, bearing in mind that any “surprise” outcome may cause significant gaps on Sunday when the market will re-open.
If you have any questions please do not hesitate to contact our support team or email us at email@example.com
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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