Fundamental Analysis:- The USD is still the stronger of the two currencies with the FED looking at continuing their gradual rate raises over the near term. Even raising rates a little more than expected to stop Inflation
jumping over their target. On the GBP side of the currency pair; Teressa May comes under pressure to resign as 40
of her MP's announce a vote of no confidence. This will add pressure to the outcome of Brexit and weigh further on the GBP. These two fundamentals make the GBP weak and the USD strong giving this currency pair downward pressure.
Technical Analysis:- You can see from the 4 hour chart that the price closed on a previous support and resistance
zone and their was a significant push down after the pull back to 13100. Each high spike since the end of September has been lower than the previous showing downward pressure. The current price looks good for entry although after the vote of no confidence over the weekend the market might open lower. A stop loss above the high spike of 13100 is a good spot and looking for a return to 12900 in the first instance will give a reward of 3:1
stop loss 13110
take profit 12900