The pound was supported by the labour party
The pound sterling to the beginning of the last week of January all pretty good. The British currency is at the local highs paired with the US dollar, and that it has fundamental reasons.
Last week the opposition of the labour party in the UK did not rule out the possibility of supporting Brexit agreement in the form in which it is the Prime Minister Theresa may (Theresa May). The labour party don’t like the scenario out of the European Union in chaos and without trade agreements, the plan may, from “two evils” they choose the lesser.
A few days of sparkling optimism on the ground appeared and talk about the fact that the labour party at the last moment can turn in your vote is not where you want it. However, optimists still outnumber pessimists. The vote on the agreement with the EU to be held on Tuesday, January 29. The situation is, to put it mildly, alarming – until you start Brexit 29 March, there is very little, and the most important documents are still not signed.
Now the pound is feeling the support from the falling U.S. dollar. Ahead of the Federal reserve’s meeting, the first this year, and the market is discussing the option of a milder reducing regulator of the volume of its balance, than it was planned.
On 4-hour chart GBPUSD have seen a steady upward channel. Quotes reached the level of 38.2% according to Fibonacci scale and test the resistance line of the channel. In this situation as a breakdown and breakout from resistance. In the case of rebound from the resistance line we can expect a decline to the support level at 1.2975 set. In case of a breakout of the resistance at 1,3216 we will see another impetus of growth to the levels of 50.0% (1,3386) and 61.8% (1,3620).
On the 1 hour timeframe in GBPUSD see that achievement quotes resistance lines and divergence on the Stochastic indicator signalling the beginning of a short-term pullback. Local reduction is aimed at 1,3130 level of support, break of which will open the way to lower the projection channel to its support level – 1,3025.
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