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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

GBP/USD and the FTSE in the current Brexit climate

Johnson's Brexit deal passes but timeline vote rejected, extension likely

GBPUSD Source: Bloomberg

The latest in GBP/USD:

It's been one volatile session after another for the pound's price with investors tuned in to see the latest Brexit updates, and yesterday was no exception to that rule with the net result from the House of Commons a yes vote on UK Prime Minister’s Brexit deal but a no on hurrying it through ahead of the month end Brexit deadline, and in the process raising the likelihood of a general election that would need the backing of parliament. In terms of extending the Brexit deadline past the current 31 October date would need a green light from the EU, and hence the ball is in their court in terms of announcements in that regard. While a reduced no-deal Brexit likelihood is positive for the pound, internal political uncertainties have yet to subside, and could keep the pound volatile in the process.


GBP/USD Technical analysis, overview, strategies, and levels

From a technical standpoint – and it certainly factors in less given bullish gains were on the back of fundamental political progress – all its main indicators are flashing green and with a trending Average Directional Index (ADX), but its conformist breakout strategies on any news that may be more ideal than reversal and fading strategies at risk of being stopped out.

Current Technical Overview Volatile
Technical Overview Conformist Strategies Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above
Technical Overview Contrarian Strategies Sell 1st Resistance After Reversal, Buy 1st Support After Reversal
S/L for 2nd Resistance 1.3064
2nd Resistance 1.3028
S/L for 1st Resistance 1.2992
1st Resistance 1.2956
Relative Starting Point 1.2884
1st Support 1.2812
S/L for 1st Support 1.2776
2nd Support 1.2740
S/L for 2nd Support 1.2704

IG client and CoT sentiment for GBP/USD

In sentiment, retail bias is little changed from a slight majority long 53% and stands in significant contrast to the extreme short Commitment of Trader (CoT) bias of 79%.

Sentiment Source: IG charts
Sentiment Source: IG charts

GBP/USD Chart with retail and institutional sentiment

GBPUSD Source: IG charts
GBPUSD Source: IG charts

FTSE 100 Technical analysis, overview, strategies, and levels

From a technical standpoint for the FTSE 100, the daily outlook remains consolidatory despite recent gains that have failed to take its price above its 50-day moving average, and hence remains below all its main long-term moving averages for the time being. Nearly all its main indicators are neutral, but its Average Directional Index (ADX) is showing an ongoing propensity to trend, and where any risk-related Brexit news could cause greater movement, upon which a contrarian breakout strategy may be more ideal than a conformist reversal which applies in the absence of any fresh news.

Current Technical Overview Consolidation
Technical Overview Conformist Strategies Sell 1st Resistance After Reversal, Buy 1st Support After Reversal
Technical Overview Contrarian Strategies Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above
S/L for 2nd Resistance 7353
2nd Resistance 7325
S/L for 1st Resistance 7297
1st Resistance 7269
Relative Starting Point 7212
1st Support 7156
S/L for 1st Support 7128
2nd Support 7100
S/L for 2nd Support 7072


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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