The UK Could Declare Brexit ‘Water Wars’

The Telegraph reported that Britain could restrict imports of European mineral water and several food products. This surfaces under tit-for-tat measures being considered by ministers, over Brussels’ refusal to end its blockade on British shellfish. Some senior government sources also pointed to potential restrictions on the importing of mineral water and seed potatoes.

With Brexit concerns back in play, the pound could come under fresh selling pressure, prompting a corrective decline in the GBPUSD from the 34-month high of 1.4200.

Week Ahead:

USD

On Thursday, Gross Domestic Product (GDP) data will be released. The expected value is 4.1% and if the actual value is higher, we expect the USD to appreciate.

CHF

On Friday, GDP data will be announced. The expected value is 0.1% and if the actual value is higher, we expect the CHF to appreciate.

GBP

On Tuesday, the unemployment rate will be released. The expected value is 5.1% and if the actual value is lower, we expect the GBP to appreciate.

NZD

On Wednesday, the interest rate will be released. The expected value is 0.25% and if the actual value is higher, we expect the NZD to appreciate.

DOW JONES

The Dow Jones price is around 31480 and we expect a pullback to 30400 for another round of fresh buying.

GOLD & SILVER:

Gold has dropped around 70 USD in the last week. Gold’s technical support is near 1756 and the resistance levels are near 1799 and 1827.

Trade Setups for this Week:

GBPUSD

Primary View:

1. The immediate resistance is seen near 1.42054
2. The support is seen near 1.38136
3. The current price seems to be a good entry point for potential buyers
4. A pullback in entry also possible with a stoploss below 1.38136
5. The target could be 1.42054

Alternative View:

1. If the price moves below 1.38136, we may see further downside movement.

CHFJPY

Primary View:

1. The immediate resistance is seen near 118.935
2. The immediate supports are seen near 116.316 and 114.870
3. The current price seems good for potential sellers
4. Entry on pullback is also possible by keeping the stoploss above 118.935
5. The target could be 114.870

Alternative View:

1. If the price moves above 118.935, we may see further upside movement.

EURGBP

Primary View:

1. The immediate resistance is seen near 0.87183
2. The immediate support is seen near 0.85342
3. The current price seems good for potential sellers
4. Entry on pullback is also possible by keeping the stoploss above 0.87183
5. The target could be 0.85342

Alternative View:

1. If the price moves above 0.87183, we may see further upside movement.