GBP / USD – Pound Sterling Down on Brexit Blues

GBP / USD rose slightly in Tuesday's session. In North America, the pair is trading at 1.2733, down 0.60% on the day. In terms of UK outflows, UK retail sales volume jumped to 19 in November, crushing the estimate by 10 points. Later in the day we will see the BRC Store Price Index. In the United States, CB consumer confidence dropped to 135.7, missing the estimate of 135.7 points. On Wednesday, the UK releases bank stress tests and the BoE Financial Stability Report. The United States releases its preliminary GDP for the third quarter, with a forecast of 3.6%.

Now that the European Union has reluctantly approved the Brexit withdrawal agreement, the Brexit balloon is in the hands of British lawmakers. A vote on the agreement was scheduled for December 11, leaving the prime minister two weeks to convince a skeptical parliament to agree and inaugurate the post-Brexit in March. The EU has warned that it will not open to any changes. May will have to convince lawmakers that the current draft agreement is preferable to a hard "no deal", Brexit.

May will have some work to do, the Labor Party is on the verge of torpedoing the deal and many Conservative MPs are unhappy that the UK is still in a customs union with the continent. In addition, the DUP fears that the agreement, which keeps Northern Ireland in a customs union with Ireland, weakens the link between Northern Ireland and the rest of the United Kingdom. United. The stakes are high for Theresa May – if she fails to get the agreement accepted by parliament, calls for her resignation will be launched, which could lead to early elections in the United Kingdom.

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Fundamentals GBP / USD

Tuesday, November 27

• 6:00 Sales made by British CBI. Estimate 10. Real 19
• Clarida, FOMC Member of the United States Speaks
• 9am HPI. Estimate 0.4%. 0.2% real
• 9:00 USP S & P / CS Composite 20. Estimated 5.3%. Real 5.1%
• 14:30 Bostic, member of the US FOMC, speaks
• 10:00 Confidence of American consumers in CB countries. Estimate 136.2. Current 135.7
• 12:00 Fed Chairman, Powell, expresses
• 19:01 British Retail Price Index (BRC)

Wednesday, November 28

• Attempt – UK Bank Resistance Test Results
• Attempt – BoE Financial Stability Report

* All hours of release are EST

* Key events are in bold

GBP / USD for Tuesday, November 27, 2018

GBP / USD November 27 at 11:45 am EST

Open: 1.2809 high: 1.2820 Low: 1.2730 To close: 1.2738

GBP / USD Technical

The GBP / USD remained stable during the Asian session and recorded considerable losses for European trade. During the North American session, the pair recorded slight gains but has since retracted.

• 1.2706 provides weak support
• 1.2812 is the next line of resistance
• Current range: 1.2706 to 1.2812

Other levels in both directions:

• Below: 1.2706, 1.2589 and 1.2488
• Above: 1.2812, 1.2915, 1.3048 and 1.3173

This article is for general information only. This is not an investment advice or a solution for buying or selling securities. Opinions are the authors; not necessarily that of OANDA Corporation or its affiliates, subsidiaries, officers or directors. Leverage trading is high risk and not suitable for all. You could lose all your deposited funds.

Kenny Fisher joined OANDA in 2012 as a currency badyst. Kenny writes daily about current economic and political developments affecting major currency pairs, with a focus on fundamental badysis. Kenny began his career in the foreign exchange sector at Bendix Foreign Exchange in Toronto, where he worked as a corporate account manager for more than seven years.