Market Overview

Cable Bleeding On Messy Government Reconstruction Targeting $1.3500

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The US Dollar is in a consolidation phase after falling lower at the beginning of 2018. The GBP/USD is trading down 0.3 percent at around $1.3530 after the UK Prime Minister Theresa May’s attempt to restructure her government.

May’s move hit the fierce opposition within her government and turned into chaos as senior ministers refused to follow the orders of Prime Minister Theresa May. Health minister Jeremy Hunt refused to leave while education Secretary Justine Greening decided to quit.

In relatively data light week technical indicators are likely to dominate the foreign exchange market this week. The GBP/USD is currently trading in a sideways move after hitting the cyclical high of $1.3608 last week.

The technical oscillators are at lower levels with both Relative Strength Index and Slow Stochastics moving within Oversold territory. The move lower on GBP/USD is now targeting $1.3510 level representing 38.2 percent Fibonacci retracement of the upmove from $1.3340 to $1.3608.

Should the Fibonacci boundary be broken on the downside, next hurdle is a psychological support line of $1.3500 and then $1.3480 representing 50 percent Fibonacci retracement of the current upmove.

GBP/USD 15 minutes chart

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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: FXStreetEurozone Forex Markets

 

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