Deutsche Bank (DBK.GR) said it would take profits from its recent recommendation to sell the euro and buy sterling, changing its view to neutral.
The pound was sold overnight because of new concerns about the no-deal option after parliament voted against Prime Minister Theresa May's proposal.
In a letter to its customers, analyst Oliver Harvey of Deutsche Bank has announced that it is now time to look for profits from recent rally.
It is more likely that the clock runs down by March 29, when MP's will be forced to approve the prime minister's deal under the threat of a crash no-deal Brexit, he said.
GBP/USD
Time frame: H4
Technical Analysis: The H4 chart shows a clear trend channel, where the price has not yet reached the diagonal support. This support overlaps with 50 EMA, and just below it lies a 23.6% Fibonacci level.
Indicators:
The price is over 50 EMA and 200 SMA, and they play a supporting role.
DeM – Is in oversold zone and does not support sell positions.
Entry: Purchase when the price reaches the diagonal support line and place a stop at 1.3000
Alternative Scenario:
Breakthrough of the diagonal support + 23.6% of Fibonacci would lead to new sales of the pair.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.