Key Points

• Brexit and the Pound
• Monthly ascending line
• 200 Moving Averaging indicating a health uptrend
• Key pivot points

A summit of EU leaders to be conducted on the 19^th of this month is now broadly regarded as the final deadline for a preliminary Brexit deal. The negotiations are to range from the UK’s future trade and security ties with the EU are set to go to the wire. The UK’s PM was recently on record postulating that if the two parties fail to reach a consensus, the UK will exit on an Australia type of deal. The deadline for the current transition period expires on the 31^st of December.

The Sterling has been oscillating up and down depending on the latest Brexit rhetoric. Positive comments from the EU leadership in regards to a potential deal were responsible for driving up the sterling from monthly lows at 1.2800. Positive comments from Michel Barnier drove the GBPUSD from the 1.2950 handle to the current trading range close to 1.3200.

The GBPUSD is currently finding its support on a monthly ascending, and the latest take-off from this line was at 1.2935.  Minor ascending support lines are playing their part in sustaining the current bull run on the pound, the current support being at the 1.3110 region.

The market’s most respected moving average is currently pointing upwards highlighting a health bull trend. The 200 Moving Average is slightly above 1.3000 at the same time inclined at approximately 30% indicating a stable trend. The current price of the sterling against the dollar is trading above the 60 MA and 100 MA, portraying the strong bullish momentum in the market. The bulls will likely face strong repulsion at the 1.3320 resistance region, whilst a break beyond that wall will open the door to challenge the 1.3450 September highs.

Trends

Moving Average	Simple	Exponential
60	1.30965 BUY	1.31229 BUY
100	1.30682 BUY	1.30847 BUY
200	1.30084 BUY	1.30363 BUY

Key points to look out for traders observing lower time frames.

Pivot Points (Hourly)

Name	S3	S2	S1	Pivot	R1	R2	R3
GBPUSD	1.3092	1.3128	1.3150	1.3163	1.3185	1.3198	1.3233
EURUSD	1.1780	1.1800	1.1813	1.1820	1.1834	1.1841	1.1861
USDJPY	104.79	104.92	104.97	105.06	105.11	105.2	105.34

Swing, position traders as well as investors are paying special attention to the pivot points included in the table below.

Pivot Points (Daily)

Name	S3	S2	S1	Pivot	R1	R2	R3
GBPUSD	1.2937	1.3041	1.3080	1.3145	1.3184	1.3249	1.3353
EURUSD	1.1667	1.1732	1.1769	1.1796	1.1834	1.1861	1.1925
USDJPY	104.51	104.86	104.99	105.2	105.34	105.55	105.90