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Currency
by FXOpen on March 27, 2019

GBP/USD outlook: the pair recently declined below 1.3220

The British Pound volatility was low with no news on the Brexit agreement. At the moment, there is a high uncertainty of further developments, but so far, the markets continue to optimistically assess the option with a long delay and the UK leaving the EU with an agreement. In the short term, the Pound remains under pressure before a vote in the British parliament.

There are more opponents of the agreement among the deputies of Great Britain than its supporters. Wilson, the representative of the Democratic Unionist Party, said yesterday that the Parliament was pleased that Brexit was approaching without a deal. According to Goldman Sachs, an exit without an agreement can take place with a probability of 15%. Analysts already give a 35% chance of canceling Brexit and 50% that a deal will be concluded.

GBP/USD Technical Analysis

The British Pound recovered recently and traded above the 1.3200 resistance against the US Dollar. However, the GBP/USD pair is facing a decent barrier near the 1.3250 level and it recently declined below the 1.3220 support.

GBPUSD-Chart

The pair even broke the 1.3200 support level and settled below the 50 hourly simple moving average. Moreover, there was a break below the 76.4% Fib retracement level of the last wave from the 1.3160 low to 1.3261 high.

If the pair remains in a bearish zone, it could even break the last swing low at 1.3160. In the mentioned situation, the pair might test the 1.3135 level and the 1.236 Fib extension level of the last wave from the 1.3160 low to 1.3261 high.

On the upside, the pair must surpass a bearish trend line and the 1.3200 resistance on the hourly chart to move back into a positive zone.

By FXOpen

FXOpen is a Forex and Cryptocurrency broker founded in 2005 by a group of traders. With over 10 years of experience, the company has established itself as a major Forex broker that continues to expand rapidly across the globe. FXOpen offers the MT4 and MT5 Forex trading platform with a wide range of trading instruments including 100+ FX, CFDs, Indices and Cryptocurrency markets. FXOpen also provides its own PAMM technology allowing clients to benefit from the strategies of professional traders with a proven track record of successful trading. The FXOpen Group also includes the ASIC regulated FXOpen AU in Perth Australia and the London-based FXOpen UK that is regulated by the FCA.

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