GBP/USD. November 8th. Results of the day. Voting for Theresa May’s exit plan is the main event for the pound in the near
The amplitude of the last 5 days (high-low): 276p-89p-91p-86 p-101 p.
The average amplitude for the last 5 days: 129 p (134 p).
The British pound sterling has started a weak downward correction. It is the weakness of this correction that allows us to assume that the uptrend is not yet complete. Traders do not take profit on long positions in large quantities. Today’s announcement of the results of the Federal Reserve can help traders to continue the corrective movement, if, for example, the Fed will follow hints of a rate hike in December, which, in fact, the market awaits. In this case, the pair may go below the critical line, which will be the first step to change the trend for the instrument. As for the main topic for the pair – Brexit – there was no new information about this. The market is waiting for the 21st, since, according to Dominic Raab, before this date the agreement can be signed by both parties. Meanwhile, a more important event is coming – a vote in Parliament for Theresa May’s plan to leave the EU. Here a number of problems may arise. If Parliament does not accept May’s plan, which may well happen, given the number of opponents, it can cause a serious blow to the pound, and negotiations with the EU can once again be considered a failure. If May fails to agree even with Parliament, then all her agreements with the EU leaders will not matter. Thus, we recommend focusing on this event.
The GBP/USD currency pair started a weak correction. The price rebound from the Kijun-sen line or a turn to the top of the MACD indicator will serve as a signal to open new buy positions with the target of 1.3236.
Sell orders can be opened in small lots if traders manage to overcome the critical line. The goal in this case will be the level of 1.2978.
In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.
Explanation of illustration:
Kijun-sen – blue line.
Senkou span a – light brown dotted line.
Senkou span B – light purple dotted line.
Chikou span – green line.
Bollinger Bands Indicator:
3 yellow lines.
Red line and histogram with white bars in the indicator window.