GBPUSD
The pound rallied yesterday, and was affected by multiple Brexit-related information during the trading day. At 19:00 GMT, the just-concluded British Parliament Brexit vote ended with the defeat of Prime Minister Theresa May. The last trading day was extraordinarily long for Prime Minister Theresa May. After flying to Fort Smith on the evening of the 11th and successfully obtaining three legally binding documents from the EU concession, the pound soared nearly 100 points in Asia and hit a new high of 1.3285 this month. However, in the European market, the head of the UK inspection said that the Brexit agreement would not fundamentally change the legal risk, but only reduce the risk of the UK entering the guarantee agreement indefinitely or passively, and the pound plunged nearly 300 points to the bottom of 1.3005. The defeat of the parliamentary vote may cause the UK to face the EU`s 43 billion pounds bill and need to be fully paid in the next few years. Therefore, in the next two days, the parliament will also vote on whether to accept the non-agreement of Brexit and whether to extend the Brexit deadline to the EU. The UK`s January GDP announced yesterday showed a 0.5% increase, much higher than the expected 0.2% and the previous value of -0.4%. However, before the Brexit, the UK economy is expected to be in a low growth period. At the same time, it is worth noting that the UK industrial output in January also increased by 0.6% month-on-month, higher than the expected 0.2% and the previous value of -0.5%. In addition, manufacturing production also recorded a 0.8% higher than the previous value and expectations. . It can be seen that the UK`s macro economy has reversed the downward trend of the decline in December last year. Technically, the initial resistance position of the pound can be seen near the high of 1.3350, while the primary support position is at 1.2900. This is not only at the low level on February 18 but also near the lower rail of the Bollinger Band. If it falls below this level, The pound will continue to test the previous low position of 1.2772.
Figure 1: daily K chart of sterling against the United States dolla
