GBP/USD - remains confined to ascending daily channel structure

GBP/USD remained confined to its ascending daily channel structure, which catapulted price upwards for most of the week. On Thursday price closed above the channel structure and remained above on Friday. After the exceptionally bearish candle the week prior, price regained all its losses, closing the week out above the significant resistance level of 1.3480. The pair has posted another higher high on the daily timeframe, which is indicative of a continued move higher. The next level of resistance is now situated at 1.3585. The move higher for most of the week was catalyzed by optimism surrounding a Brexit deal, however, an agreement is still yet to be signed.

With Brexit negotiations hanging over the GBP’s head, we would advise not trading GBP/USD going into this week. As has already been seen, announcements regarding Brexit negotiations, even on Twitter, can have tremendous affects on the GBP pairs. As price closed above 1.3480, we will be looking for a move higher on this pair this week. Price may experience a pullback towards this new support level before moving higher.