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Sterling Closes Week Slightly Higher, Giving Back Initial Gains on Brexit Impasse

By Jay and Julie Hawk of www.TheFXperts.com

 

After a particularly volatile Friday session, GBP/USD finished the week gaining a fraction against the U.S. Dollar despite firming significantly early in the week. Friday saw Sterling go into a tailspin decline after UK PM Theresa May announced having come to an impasse with the European Union regarding her Chequers Brexit deal.

Cable fell over two big figures on the news and caused the formation of a “Gravestone Doji” pattern on the GBP/USD weekly candlestick chart as shown below. Key support shows up at 1.2662, with resistance now seen at the doji pattern’s top of 1.3298.GBPUSD Weekly Chart

This Gravestone Doji candlestick pattern is a bearish reversal indicator that has particular significance due to its appearance at the end of a sustained five-week uptrend that commenced near the lower 14-day Envelope shown on the chart below in red.

This pattern could well signal an important short-term reversal for GBP/USD. Sterling’s near term decline could accelerate further next week, as notable pressure builds on PM May to come up with a “Plan B” or possibly face additional resignations from members of her cabinet over the Brexit controversy.

 

 

Disclaimer:

TheFXperts’ Forex MarketWatch Reports are provided strictly for educational purposes and represent the opinions of the authors. No recommendation or endorsement for specific financial trading or investment purposes is offered. Subscribers are advised to seek financial, business and legal guidance from licensed professionals.

Visit TheFXperts’ official website at www.TheFXperts.com.  You can also view and purchase Jay and Julie Hawk’s six financial books at Jay’s Amazon author page here: amazon.com/author/Jayhawk

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