Pound lost ground


Yesterday I wrote that “GBPUSD has stormed higher in the wake of the Retail Sales data, making new week high above 1.2500. However, it seems that Brexit concerns have not taken away, with Article 50 to be triggered next week, and hence cable to presents a strong resistance at 1.2500. Even though cable has extended post UK data rally earlier, making month highs at 1.2530, the missed of closing above that significant point as presented in the 4-hour chart, indicates a weakness of the pair within the day…………. cable is likely to move from now onwards lower to the 1.2450-1.2470 area.

Cable was knocked back under 1.2500 overnight after a run to 1.2507, turning well short of yesterday’s four-week peak. The pair is showing a 0.3% decline on the day, and the pound is also showing losses against the euro and yen. On the week, the quid is mixed, up 0.8% versus the dollar, fractionally firmer versus the euro, but down by 0.7% versus the yen. GBPUSD bearish move is slightly strengthened on the sound of U.S. data release.

Currently Cable traded at 1.2480 while a breakout of 1.2460 might lead to a further weakness, promoting a decline to 38.2 Fibonacci level (i.e. 1.2425 – 1.2435 area). Lastly, Pounds weakness can be well observed in EURGBP 4-hour chart, which present a smooth recovery of Euro against pound. The euro has been underpinned by PMI data with the flash readings of the March surveys beating forecasts.


Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our latest webinar and get analysis and trading ideas combined with better understanding on how markets work.

Click HERE to register the next webinar will start in:

Andria Pichidi

Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.