The British pound rose during the US session against the US dollar following developments and economic data followed Wednesday by the British economy and the US economy, which included the Bank of England disclosure of the results of the stress test for banks and the Financial Stability Report and the comments of the Governor of the Bank of England Mark Carney on the stability report At a press conference in London, to his counterpart, Fed Governor Jerome Powell, at the New York State Economic Club.
At the opening of the Asian session, the GBPUSD pair rose to 1.2847, compared to the opening levels at 1.2821.
British Prime Minister Teresa Mae told the British Parliament that the proposed agreement for the orderly departure of Britain from the European Union is the best for the British monarchical economy, explaining that the economic analysis released today states that the agreement preserves jobs. The fishing industry will determine who has the right to China within the territorial waters of the UK.
The political declaration agreed to support the strengthening of economic and security relations between Britain and the European Union. The Kingdom also has the right to establish sustainable security cooperation with the EU, she said, adding that her government will not be able to sign a trade agreement with the EU until after the official exit. In activating the Backstop plan, with the understanding that this agreement helps to ensure a better future and voting against it will impede it.
Technical analysis:
GBPUSD made a significant positive move yesterday to settle above 1.2800, driving the price to achieve more gains over intraday basis, targeting the 1.2894 level at the 20 MA. Then the 1.2963 level at SMA 50 before determining the next destination's fate he explained.
The Stochastic has managed to break out of the oversold territory and is now at the bullish Aegean cross.
We note that a break of 1.2963 will lead the price to achieve further gains and head towards the areas of 1.3226 in the near term, while a break of 1.2725 will put the price under negative pressure whose targets start with testing pivotal support 1.2636.
The trading range for today is expected among 1.2725 support and 1.2950 resistance.
Support and resistance:
Support: 1.2773-1.2698-1.2636
Resistance: 1.2843-1.2894-1.2963
The general trend for today is bullish.