We observe that news streams on the Brexit issue have a negative impact on Pound because Prime Minister Theresa May is not supported by the Labor party. May, when asked whether she will resign or not, US President Trump’s visit to London on June 10 may shape the process of his resignation. In this process, news feeds related to both the resignation and the Brexit process are important in order to interpret the short-term view of the GBPUSD parity.
While the GBPUSD parity continues to display a negative trend, it may be noted that these outflows are corrected by the recovery from the 1,2605 level, while the main negative trend continues under the region of 1,2685 – 1,2715, representing the Alligator indicator lines. The last rise is a level that should be considered whether or not the current trend zone continues.
Main Scenario: GBPUSD continues its negative outlook under the 1.2715 – 1.2760 region representing alligator indicator lines. With this in mind, the trend rally can be seen towards the support points of 1.2605 and 1.2560 especially 1.22645. Especially movement under the 1.2605 level can provide the further strengthening of the negative outlook. Otherwise, the on-line reactions may occupy the agenda. In this process, the possible response level before the 1,2715 – 1,2760 region was recorded as 1,2685.
Alternative Scenario: For the end of the negative trend outlook for the GBPUSD parity, it is necessary to pass the 1,2715 – 1,2760 region. In the case of trend changes, a positive outlook can be observed towards the 1,2865 and 1,2925 barriers, especially at 1,2815, and if such a change occurs, an increase towards the 1,3175 barrier that it tested at the beginning of May can be seen.
Pivot: 1,2715 – 1,2760 region
Support: 1,2645 – 1,2605 – 1,2560
Resistance: 1,2685 – 1,2715 – 1,2760