With Britain’s exit date approaching fast with Brexit negotiations continuing late into the night as time is running out ahead of the EU Summit in Brussels. Talks are set to continue today with EU official Michel Barbier set to brief EU ambassadors later today.
Both sides, EU and UK have said they hope to agree on a deal before the EU summit on Thursday and Friday, and if that happens, the government says it will introduce a withdrawal agreement bill to be voted on next Saturday in a special Parliamentary session. – BBC
GBPUSD Currency pair Technical Outlook
We might expect more volatility on the GBPUSD currency pair the closer we get to Thursday and Friday EU Summit in Brussels. Wednesday morning saw the cable rate move lower from 5-month highs as uncertainty over an orderly Brexit continues.
Source – Bloomberg
Eurozone Indices technical outlook:
FTSE 100
The broader market is feeling the pinch as Brexit drags on, and Eurozone economic uncertainty persists, which saw European stocks open lower on Wednesday.
Technical points on the FTSE 100:
- We might see the FTSE remain under pressure and retreat to the 7137 and 7046 support levels, respectively.
- The 50-day SMA is acting as resistance, which supports the current move lower to the 7137 support level.
- Upside potential will only be visible if we see a close above the 7259-resistance level, which might target 7490 in the future.
Source – Bloomberg
DAX 30
The German economic outlook remains weak as the Eurozone’s largest economy might have moved into a recession. The latest economic sentiment data released yesterday, the Germany ZEW Economic Sentiment data showed a decline in the economic outlook for the next six months.
Technical points on the DAX 30:
- The price action has reached the primary 12657 resistance line and might move lower from here as traders take profits.
- The support level to watch would be 12450, which was previous resistance.
- The 50-day SMA is pointing higher, which supports the current move higher.
- The RSI has reached overbought levels but can push on at these levels for some time.
While the Euro remains under pressure, we might expect the German Dax to push higher while the Eurozone uncertainty remains.
Source – Bloomberg
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Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.
