The Brexit quagmire is continuing to cap Pound Sterling. With the WA agreement now thrice rejected by the House, the PM requires more time to reach a deal with the opposition to avert a no-deal Brexit. The EU may well give the UK more time – but at what cost? We will find out this week.
Technically, GBPUSD is supported by the 1.300 floor. Bleak as the situation is, this level is holding on firmly. Several times the rate breached this line but rebounded soon after. As long as the pattern of rising lows holds, this rate has a chance of racking further gains (see Featured Chart).
Casting my eyes to other better-performing instruments, I highlight:
- Bitcoin, which is affirming its breakout above the crucial $5,000 level (see below). After highlighting this instrument before its breakout, trailing stops are recommended to lock in some profits. Further near-term upside expected, with a potential test of the $6,000 major resistance level.
- Platinum, which is breaking out to new multi-month highs (see below). Its relative strength among precious metal is glaring and may well last further. I anticipate the $900 to be converted into support.
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Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.