GBPUSD Gives Up Over 100 Pips as UK Government Looking to Extend the Recess Period
GBPUSD gives up over 100 pips as UK government looking to extend the recess period to 14 October, that means the parliament can’t block a no-deal Brexit. The pair last week got a boost from the UK Retail Sales which rose 0.2% m/m in July beating forecasts, suggesting that the British economy is in better shape than investors feared.
GBPUSD sinks on the news and as of writing is 0.84% lower at 1.2182 having hit the daily low at 1.2155, breaching all hourly moving averages. On the upside, immediate resistance now stands at 1.2187 the 200-hour moving average, while more offers will emerge at 1.2241 the 100-hour moving average. Intraday traders can enter a long position if the pair breaks above 1.2241 daily high, targeting a break above 1.23, a stop order should be activated at 1.22. Short positions targeting 1.21 should place stop-loss orders at 1.22. The recent sharp correction from recent highs cancels the recent positive bullish momentum for the pair and now only a move above 1.2289 can attract more bids. Traders must be very cautious with GBPUSD as the developments around Brexit will add to volatility.