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GBP higher uncertainty higher volatility new era

Discussion in 'Current Market Sentiments' started by fx-recommends, Feb 21, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    GBPUSD Daily 22-02-2016 02-04-02 ص.jpg

    London Mayor Boris Johnson who is expected to succeed David Cameron by 2020 elections announced his decision during the weekend to go along with UK Justice Secretary Michael Gove for campaigning against Cameron's deal preferring Brexit.

    The conservative ruling party seems ahead of critical times, despite David Cameron's efforts which ended last Friday to a deal to have special British characteristic in EU freeing the union membership from most of the contents the other EU countries follow to keep UK in EU but that's looking not enough even for the ruling party itself!

    So, what about the labor opposing party?

    It looks that there can be political instability next in UK with more surprises ahead till the referendum date which will be waited to end this uncertainty.

    God willing, The cable main figure this week is UK Q4 GDP which is expected to come as the same as the preliminary reading showing quarterly growth by 0.5%, after expansion by 0.4% in the third quarter of last year.

    The cable opened the new week trading at 1.4276, after touching its hourly SMA200 by reaching 1.4407 by the end of last week supported by the agreement which opened the way to Cameron to date The Brexit referendum next Jun. 23.

    The cable retreated further during the Asian session, after failing to restore a place above 1.43 again.

    The cable which shrugged off Jan retail sales yearly rising by 5.2% is still well below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 1.4551 in its eleventh day in a row of being above the trading rate.

    The cable daily RSI-14 is now in the neutral territory reading 41.192 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in the neutral area reading 33.781 with its signal line which is closer to the oversold area below 20 reading now 28.986.

    The cable has been already capped below its daily SMA50 by facing resistance at 1.4666 halted its rebound from 1.4078 to be followed by lower high at 1.4578, before last Friday peak at 1.4407.

    Important levels: Daily SMA50 @ 1.4546, Daily SMA100 @ 1.4894 and Daily SMA200 @ 1.5194


    S1: 1.4233
    S2: 1.4147
    S3: 1.4078
    R1: 1.4407
    R2: 1.4576
    R3: 1.4666

    Have a good day

    Kind Regards

    Global Market Strategist
    Walid Salah El Din
    Mob: +20 12 2465 9143
    E-Mail: mail@fx-recommends.com
    #1 fx-recommends, Feb 21, 2016
    Last edited: Feb 21, 2016

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