Fundamental Analysis
British Pound acquired strength last week from some of its own fundamentals as the UK government managed to get the Brexit bill passed through Parliament smoothly and so far, they have handled the process very well. We also had reports that the PM May had offered 20 billion euros in return for free market access and this was positive news for the UK economy and this helped to keep The Cable strongly bid for the week.
The economic data coming out of UK was also positive for the currency.
British Pound held ground against the US Dollar even when other currencies were retreating much.
Technical Analysis
The pair failed to break above the resistance of 1.3650 and formed a bit of a shooting star on the weekly chart. This makes us believe that the pair is very much likely to see a pull back.
Trading Preference
The pair is likely to pull back, therefore we can short the pair starting the week. However, if a supportive candle (H4 or Daily) forms around the uptrend line shown in the chart, we will most likely go long. If the pair can break above the resistance of 1.3650, that is extremely bullish.
