GBP/USD: the scenario that is taking shape is very uncertain
On gbp/usd the scenario that is taking shape is very uncertain. The British government has managed to find an agreement with the European Parliament. They need an extension of the London exit from the EU at the end of October. These six months should be enough for May in order to be able to convince their parliament again to accept the agreement with Brussels. The main task is don't scare the markets with a "no-deal Brexit". Hardly those conditions already rejected twice by most members of the English parliament will be accepted. This could be the third vote without any modification of the purpose. The European Union is not prepared to retract at the moment.
All this uncertainty is making the pound lateralize in this channel between 1.30 and 1.329 by February. We do not enter the market until the scenario is clearer.
This is what we can see in the technical side.
We see a price squeeze in the area between three key levels, the basis of compression is the dynamic support passing through 1.306. The first resistance is on a static level at 1.309. The second one on the dynamic level at 1.311. Based on a broken support or resistance the key levels will be 1,289 or 1,326.
All this uncertainty is making the pound lateralize in this channel between 1.30 and 1.329 by February. We do not enter the market until the scenario is clearer.
This is what we can see in the technical side.
We see a price squeeze in the area between three key levels, the basis of compression is the dynamic support passing through 1.306. The first resistance is on a static level at 1.309. The second one on the dynamic level at 1.311. Based on a broken support or resistance the key levels will be 1,289 or 1,326.