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GBPUSD chart view


The Brexit story is apparently approaching its culmination. Headlines and gossips, official statements and comments keep coming with ever increasing tension and frequency. Latest report says that EU27 ambassadors are gathering for Brexit meeting and looks like May is cancelling her trip to Brussel. Position from EU lawmakers is clear: there will be no any legally binding assurances on the backstop and this is essentially a disaster for further orderly process. 

I said before that GBP behaves surprisingly well, despite all last months of negative  Brexit flow and  aggravating circumstances. It this a sign of inherent strength and early indication of future movements ? This is yet to be seen.

GBPUSD 4 hour chart

As for today, another factor to consider is NFP reading which will be a big mover for USD.

Looking at chart, my previous trade recommendation to short GBPUSD yielded  nice profit. Now, I am considering to reverse the trade to the long one. There is a strong support at 1.3040-1.3055 area and I expect bounce from this one. Yet, even if this support is broken below, there is a stronger cluster at 1.2875 -1.2910-1.2930 area. I believe it is a safe bet to enter longs at this support zone.

Aggressive buyers can start accumulating longs at current levels ( @1.3080) and cautious traders consider enter longs at 1.2875-1.2930. Always keep in mind the position sizing as volatility is coming.

Have a nice weekend !