GBP/USD Outlook (25th January 2019)

• GBP/USD rally breaks key level
  
• PM May receives support from DUP
  
• World Economic Forum Annual Meetings Day 3
  

Price Movement
Since yesterday, GBP/USD moved downwards before a strong rally, moving up by more than 100pips.

Trend
GBP/USD is trending upwards.

Macro Background
No major economic data release.

Important Issue
GBP/USD responded bullishly upon hearing that Northern Ireland’s Democratic Unionist Party (DUP) agreed to support Prime Minister May’s Plan B Brexit deal if it includes a clear time-limit to the Irish backstop.

Day 3 of the World Economic Forum annual meeting. Comments made by highly influential figures may cause market volatility.

Technical
With DUP’s support on PM May’s Plan B, GBP/USD shot up and broke the 1.31 key level.

Price Levels
Current Price: 1.31169
Next Resistance: 1.31658
Next Support: 1.30000