hi traders this is a new month December 2018 , here after the May's summit the draft of Brexit the GBP still down and hurting the economy, here is my view of the pair let see the what is going on
Things are looking bleak for PM May and her current Brexit proposal which was unanimously approved at a Brexit Summit by the European Union a few days ago. While sterling saw positive headwinds over news last month that no-confidence vote on PM Theresa May is highly unlikely to pass owing to lack of required number of participants, analysts believe the situation may come to pass during parliamentary meet scheduled on Dec 11, 2018 as the deal faces high level of resistance in UK with lack of support from PM May’s own party and allies. A rejected deal will see UK head towards March 2019 with a no-deal brexit scenario and give hard Brexiteers enough clout and support from Parliament for them to initiate a no-confidence vote on PM May.
On release front, both calendars are highly active with PMI updates. UK’s calendar is scheduled to see release of Manufacturing PMI at 09:30 GMT and is forecast at 51.5 while previous reading was at 51.1 While US calendar will see release of ISM Manufacturing PMIs at 15:00 GMT forecast at 57.8 while previous reading was at 57.7. When looking from technical perspective, the pair is painting a g a long-term dominant bearish trend. Readings in the daily chart maintain the risk skewed to the downside, as the pair is developing far below moving averages while the RSI indicator resumed its decline, now gaining downward traction at around 42. In the 4 hours chart, the 20 SMA heads mildly lower around 1.2770, providing an immediate short-term resistance, while technical indicators head lower within negative levels. The risk of a downward extension will increase on a break below 1.2724, November 27th daily low.
Things are looking bleak for PM May and her current Brexit proposal which was unanimously approved at a Brexit Summit by the European Union a few days ago. While sterling saw positive headwinds over news last month that no-confidence vote on PM Theresa May is highly unlikely to pass owing to lack of required number of participants, analysts believe the situation may come to pass during parliamentary meet scheduled on Dec 11, 2018 as the deal faces high level of resistance in UK with lack of support from PM May’s own party and allies. A rejected deal will see UK head towards March 2019 with a no-deal brexit scenario and give hard Brexiteers enough clout and support from Parliament for them to initiate a no-confidence vote on PM May.
On release front, both calendars are highly active with PMI updates. UK’s calendar is scheduled to see release of Manufacturing PMI at 09:30 GMT and is forecast at 51.5 while previous reading was at 51.1 While US calendar will see release of ISM Manufacturing PMIs at 15:00 GMT forecast at 57.8 while previous reading was at 57.7. When looking from technical perspective, the pair is painting a g a long-term dominant bearish trend. Readings in the daily chart maintain the risk skewed to the downside, as the pair is developing far below moving averages while the RSI indicator resumed its decline, now gaining downward traction at around 42. In the 4 hours chart, the 20 SMA heads mildly lower around 1.2770, providing an immediate short-term resistance, while technical indicators head lower within negative levels. The risk of a downward extension will increase on a break below 1.2724, November 27th daily low.
No comments:
Post a Comment