Brexit News and Sterling (GBP) News, Charts and Analysis – Webinar
- Sterling quiet, PMIs on the horizon.
- Bullish technical signal flashing on the FTSE.
Q3 2019 GBP Forecasts and Top Trading Opportunities
UK PM Johnson to Address the Conservative Faithful as Brexit Drags on
A busy week for Conservative MPs who will be dividing their time between Parliament and the Party Conference in Manchester. It is expected that the Chancellor will announce fresh spending plans to help boost the economy, while Brexit planning continues. Rumors still swirl that a deal is starting to come together although it may not be soon enough if, as expected, Parliament again tries to tie Boris Johnson’s hands.
GBPUSD remains around 1.2300 ahead of the latest round of UK PMIs. The manufacturing sector is weak, as it is in Europe, while the composite PMI is teetering on the divide (50) between recession and expansion. At the end of the week, the latest US non-farm payroll report will be watched closely to see if the greenback can continue its move higher.A ‘head and shoulders’ pattern is also forming, normally a signal of lower prices.
GBPUSD Price Daily Chart (January – September 30, 2019)
The FTSE 100 chart is also showing another closely watched technical signal. The 20-day moving average has now pushed above the 200-day ma, a ‘golden cross’, a set-up that indicates higher prices as short-term momentum dominates market thinking.
FTSE 100 Daily Price Chart (January – September 30, 2019)
The IG Client Sentiment Indicator shows retail traders are 71.0% net-long GBPUSD, a bearish contrarian bias.
What is your view on Sterling and the FTSE 100 – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at email@example.com via Twitter @nickcawley1.