Sterling remains in focus this week as the ruling UK Conservative party hold their annual conference with Brexit negotiations (and the lack of them) top of the agenda. PM May is under pressure to assert her authority against an increasingly fractious party. The main outlier is the Foreign Secretary Boris Johnson who has a major “loyalty” speech today but remains the main mouth piece of the hard Brexit view. Sterling is the main victim of the Brexit uncertainty and here on the GBPCAD chart I have short positions to the downside from 1.6620 on both the H4 and Daily time frames. H4 suggests a move to 1.6580 and then 1.6545 and the Daily, down to 1.6420. Reversals to 1.6685 and 1.6785 would reverse the move down.
UK Construction PMI data this morning slipped into negative and contraction territory coming in at 48.1, with the market expecting a still positive sector for September and a reading of 51.1. The miss was significant in a significant month and all eyes are now on the Services number which is published tomorrow.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
Senior Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.