FxWirePro: GBP/USD remains well-bid in crucial week; no bias in retail sentiment

We have entered a crucial week in the ongoing Brexit;

• In little more than two weeks, Britain would either leave the European Union without an agreement if a deal is not struck by then or else the deadline needs to be extended further from April 12th.
• More importantly, after seizing control of the Brexit process, the UK parliament would vote on several finer details separately as amendments, which could be positive for the pound, especially since the gridlock of either Prime Minister May’s deals or no deal exit finally broke.
• Voting on the amendments could actually shape the Brexit deal, which could then be negotiated with the European Union within the deadline or with further extension.

Nevertheless, expect all pound based pairs to remain volatile.

• For GBP/USD - The pair has once again found support around 1.1315 area today, while 1.325 is posing as resistance. The pair is currently at 1.324.
• Maintain long positions in the pound as we head to the final weeks of Brexit. Expect heavy buying on sharp sell-offs around 1.295-1.305 area. We expect the pound to reach several targets; 1.34, 1.355, 1.364, and 1.375 area.
• However, expect high volatility; so stop losses should be large.

Retail sentiment:

• Retail positional data from IG markets show no major bias in retail positioning. Positions are only marginally higher on the short, giving the pairs slight bullish bias.