Summary:
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GBPUSD waits for the Brexit vote in the UK parliament
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FTSE100 (UK100) keeps trading within the triangle pattern
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Copper (COPPER) with a chance to extend recovery following the G20 summit
The G20 summit that took place last weekend spurred optimism on the global markets. However, spare for the OPEC meeting this week, markets are now seem to be obsessed with Brexit. As soon as next Tuesday the key vote regarding Brexit will take place. Draft agreement worked out by the Prime Minister Theresa May with Brussels does not seem to have many backers among the UK lawmakers. In the run-up to the vote PM May will conduct intensive talks with lawmakers in an attempt to secure their backing. From the technical point of view, GBPUSD once again bounces off the critical support level that bears found hard to crack in the past couple of months. The rebound was fuelled by better than expected construction PMI reading. However, pound’s fate is in the hands of the UK government and its ability to convince lawmakers to back the proposed withdrawal agreement.
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Source: xStation5
Unsurprisingly, the UK FTSE 100 (UK100) is one of the most interesting indices amid Brexit developments. The UK stock market benchmark may be sensitive to any kind of news during the next week. What is certain is that the UK companies will not be better off in case of hard Brexit and we got a glimpse of possible consequences recently when the Bank of England presented results of its stress tests. UK100 trades within consolidation that took a form of an ascending triangle pattern. Resistance level at 7150 pts holds firm with the 50-session moving average recently breaking below it. Moving averages seem to support bears now hinting on direction of the potential break from the aforementioned pattern.
Source: xStation5
Last but not least, let us take a look at the copper market (COPPER). Industrial metals rallied in the aftermath of the G20 summit unveiling investors’ higher expectations of resolving the China-US trade spat. Will the upcoming weeks bring long-desired de-escalation of the conflict? With Donald Trump as the US President nothing can be taken for granted. In theory, copper prices broke above the flag pattern. In case this formation is played out in a textbook manner price could reached the area around 6700 USD per tonne. However, it seems that longer lasting improvement in China-US ties would be needed for such an outcome.
Source: xStation5
