GBPUSD Seems not Bothered. Good Setup on the USDCHFCongratulation for the UK Parliament. Finally, they passed something.
There is a Yes for blocking the No Deal Brexit. Well, frankly speaking, this is not very relevant for the whole process but we can call it a significant movement in this comedy called Brexit. UK Parliament is very close to total embarrassment and this is the opinion from both camps: Brexiters and Bremainers. That news did not spark any bigger movement on the Cable. As we said in our previous analysis, the financial market is now pretty resilient to the news around Brexit and it is actually very hard to move GBPUSD right now.
From the technical point of view, on Cable we are in the worst place to trade – exactly in the middle of the symmetric triangle pattern. Buyers have one advantage though. The price is above the horizontal support and recently made an inverse head and shoulders pattern. Thanks to this, the sentiment can be described as slightly more positive.
Next instrument is the EURUSD, which recently tried a reversal but the price stopped on the 23,6% Fibonacci. The price still can create the inverse head and shoulders pattern, with this resistance being the neckline. The price closing a day above the Fibo mentioned above will be an invitation to go long.
I think that the best trading occasion can be spotted on the USDCHF. The price is creating a bearish flag under the neckline of the triple top formation. According to the technical analysis, we should see the breakout of the lower line of the flag soon. Going short before that can be a bit premature so be patient and stay sharp.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis