Technical Talk:GBP/USD 06-03-2019

GBP/USD regains 1.3150 ahead of EU-UK Brexit talks, US ADP
Our preference: short positions below 1.3190 with targets at 1.3140 & 1.3105 in extension.Alternative scenario: above 1.3190 look for further upside with 1.3225 & 1.3255 as targets.

Comment:
Buyers lurk near 1.3125 levels, as USD bulls take a breather in early Europe.But Brexit deadlock continues to negate Carney’s comments and upbeat UK services.

Round 2 of EU-UK Brexit negotiations remain the central focus amid US ADP dataThe bid tone around the US dollar across its main competitors weakened in the European trading, now pushing the GBP/USD pair back above the midpoint of the 1.31 handle.

The pair continued to find strong bids near the 1.3125 region and now finally seems to break theAsian consolidative mode to the upside, as the US dollar seems to extend its retreat broadly,
having faced rejection at the 97 level. A bout of profit-taking in the
USD long positions cannot be ruled out heading into the key US ADP jobs report, a precursor for the highly influential US NFP due this Friday.

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