GBPUSD Forecast: Danger below 1.31700

FX_IDC:GBPUSD   British Pound / U.S. Dollar
GBPUSD Forecast: Danger below 1.31700

GBPUSD lost 1.4%, the most in five months in response to the widely expected rate hike. The comments around the hike seemed particularly dovish.

With the GBPUSD testing the key support level of $1.3040, the market took a Friday breather after the US labour market report saw less than expected number of new jobs created in the US and wages stagnating in October.

We will have a week without an important data except never-ending Brexit negotiations process to provide substantial impulses for the market.

For the better part of the past six weeks, sterling has chopped between roughly $1.3000 and $1.3340. It tested the lower end of the range. At trendline connecting the June and August lows comes in just below $1.30 at the end of the week ahead. And 1.30300 is the Fibonacci 61.80%.If this level is broken, 1.28300 will be the target.

The technical indicators are mixed but do not seem aligned to favour a breakout. That said, the UK two-year premium over the US appears to have turned lower after widening by 30 bp from mid-September through BOE rate hike last week.

On the smaller chat time frames, we see 131200 and 1.31800 ( MA 50 ) levels as a resistance. Cable must make four hours closings above 1.31800 before targeting higher in short term.

I will publish my trade plan for premium members after Asia Opening.
EN English (UK)
EN English
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Send feedback Ideas Published Followers Following Private Messages Chat Sign Out