Nothing has changed over the festive period. The UK is still on course to leave the EU at the end of January, with only a few days of scrutiny over the withdrawal bill next week standing in the way. The pound has managed to hold onto much of its election gains although it remains a little off the highs. Given Boris Johnson’s recently earned majority in the House of Commons, I can’t imagine he’ll suffer any major setbacks next week, after which attention will shift to 11 months of trade negotiations and the direction of travel of the Bank of England under the leadership of Andrew Bailey, who replaces Mark Carney on 16 March.
Risk – Barring any bizarre surprises next week, the near future should be far less turbulent that we’ve become accustomed to. Of course, no-deal WTO Brexit remains on the table at the end of next year, so in effect, we just have a new deadline.
TECHNICAL ANALYSIS
After double top 1.328x, GBPUSD bull back; however, GBPUSD is likely to rebound, expecting a retest of the previous demand zone, + weakening USDINDEX, this could be an opportunity to buy back. GBPUSD.
GBPUSD buy 1.297x-1.299x SL 1.292x TP 1.32200
Risk – Barring any bizarre surprises next week, the near future should be far less turbulent that we’ve become accustomed to. Of course, no-deal WTO Brexit remains on the table at the end of next year, so in effect, we just have a new deadline.
TECHNICAL ANALYSIS
After double top 1.328x, GBPUSD bull back; however, GBPUSD is likely to rebound, expecting a retest of the previous demand zone, + weakening USDINDEX, this could be an opportunity to buy back. GBPUSD.
GBPUSD buy 1.297x-1.299x SL 1.292x TP 1.32200
