GBP - Signs of a bottom beginning to form?Looking at a basket of Sterling pairs on a variety of time-frames.
(You can add this to your own watchlists by copying this code: GBPAUD*GBPCAD*GBPCHF*GBPJPY*GBPNZD*GBPUSD*GBPEUR )
There appears to be some evidence of a bottom shaping on the 4-hour chart.
Expecting a bumpy ride with Sterling, but I believe the Risk/Reward is looking favourable in the short term.
We should see some more news from Brexit discussions over the next few hours.
Let's see what happens!
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Good Luck.
Joe
GBP Macro news
The July UK government posted a budget surplus of £1.3bn compared with £3.5bn the previous year with the deficit for the first four months of fiscal 2019/20 increasing to £16.0bn from £10.0bn as spending increased and revenue growth slowed.
Sterling lost ground following comments by a French official that in view of Prime Minister Johnson’s comments on the Irish backstop, the baseline scenario now seemed to be a ‘no-deal’ Brexit and President Macron reiterated that the deal could not be re-opened. German Chancellor Merkel stated that as soon as there is a solution to the Irish border issue, there will be no need for the backstop. She also stated that a negotiated Brexit would be welcomed, but Germany is ready for all outcomes and challenged the UK government to find a solution to the Irish border within the next 30 days.
The comments failed to provide significant support with Sterling holding net losses on the day. EUR/GBP settled around 0.9140 with GBP/USD below 1.2150. A labour-market survey recorded the strongest increase in wage rises since 2008, but political tensions tended to dominate sentiment with GBP/USD around 1.2120 on Thursday.
