GBP/USD: UK Parliament still likely to reject May’s Brexit deal
In fact, the technical outlook of the GBP/USD is beginning to look promising. After forming a couple of doji candles in as many months, there is a hammer candle in the making on the monthly chart of the cable around the 1.26-1.27 long-term support zone (see the inset). Obviously, we are in the middle of the month, and the candle is subject to change.
On the main daily chart, meanwhile, the GBP/USD has broken above its bearish channel and moved beyond the 50-day moving average. So, the path of least resistance looks to be to the upside for the pound, as things stand. However, we can’t ignore the fundamentals and importance of tomorrow’s vote. So, at this stage, we are proceeding with extreme caution despite the apparent bullish reversal pattern on the technical charts of the cable.
In fact, the technical outlook of the GBP/USD is beginning to look promising. After forming a couple of doji candles in as many months, there is a hammer candle in the making on the monthly chart of the cable around the 1.26-1.27 long-term support zone (see the inset). Obviously, we are in the middle of the month, and the candle is subject to change.
On the main daily chart, meanwhile, the GBP/USD has broken above its bearish channel and moved beyond the 50-day moving average. So, the path of least resistance looks to be to the upside for the pound, as things stand. However, we can’t ignore the fundamentals and importance of tomorrow’s vote. So, at this stage, we are proceeding with extreme caution despite the apparent bullish reversal pattern on the technical charts of the cable.