Congratulations to the UK parliament for finally passing something. The House of Commons has voted to block a no deal Brexit. Well, frankly speaking, this is not all that relevant for the whole process, but we can call it a significant movement in this comedy called Brexit. UK Parliament is very close to total embarrassment; something that both Brexiters and Remainers can agree on. The news didn’t spark any bigger movement on the Cable. As we said in our previous analysis, financial markets are now pretty resilient to the news around Brexit and it is actually very hard to move GBPUSD right now.
From a technical point of view on Cable, we are in the worst place to trade; right in the middle of a symmetrical triangle pattern. Buyers have one advantage, though. The pair is trading above the horizontal support and recently made an inverse head and shoulders pattern. Thanks to this, the sentiment can be described as slightly more positive.
Next instrument is the EURUSD pair, which recently tried a reversal but the price stopped at the 23.6% Fibonacci level. The pair can still form an inverse head and shoulders pattern with this resistance as the neckline. Closing the day above the aforementioned Fibo will be an invitation to go long.
I think that the best trading occasion can be spotted on USDCHF. The pair is creating a bearish flag below the neckline of the triple top formation. According to the technical analysis, we should see a breakout of the lower line of the flag soon. Going short before that could be a bit premature, so be patient and stay sharp.