Will GBP/USD manage to stay above 1.28?
GBP/USD dropped slightly last week as consolidation from 1.3012 extended. Today the pound remained stable against the greenback after data showing that the U.K. avoided a recession in the third quarter, with the economy growing 0.3% following a 0.2% contraction in the 2nd quarter. But the economy did contract by 0.1% in September and annual growth was just 1.0% in the three months to September, the lowest rate since the first quarter of 2010.
Initial bias remains neutral first and deeper fall cannot be ruled out.
Our preference Short positions below 1.2800 with targets at 1.2765 in extension. Stop-loss is seen in the $1.2820-$1.2840 area.
Technical indicators and the crossing of the 50-day and 20-day moving averages point to the strong downside momentum that does not appear to have been exhausted. The $1.2700 area is the next intraday target for the bears. But the downside pressure could be limited there.
We suspect potential exists toward the lower end of the recent range found near $1.2600 - 1.2585. This area corresponds to a 38.2% Fibo retracement objective (on the rally from 1.1958 to 1.3012), the 200-day and 50-day moving averages.
But keep in mind that as long as this key support area holds, the long-term bullish views are still the favored case. However, firm break of 1.2582 will turn focus back to 1.1946 low.
Initial bias remains neutral first and deeper fall cannot be ruled out.
Our preference Short positions below 1.2800 with targets at 1.2765 in extension. Stop-loss is seen in the $1.2820-$1.2840 area.
Technical indicators and the crossing of the 50-day and 20-day moving averages point to the strong downside momentum that does not appear to have been exhausted. The $1.2700 area is the next intraday target for the bears. But the downside pressure could be limited there.
We suspect potential exists toward the lower end of the recent range found near $1.2600 - 1.2585. This area corresponds to a 38.2% Fibo retracement objective (on the rally from 1.1958 to 1.3012), the 200-day and 50-day moving averages.
But keep in mind that as long as this key support area holds, the long-term bullish views are still the favored case. However, firm break of 1.2582 will turn focus back to 1.1946 low.
Trade closed: stop reached:
Unfortunately, the stop-loss of the signal was reached, cause the pound spikes on election news. The big news of the day was an announcement from the Brexit party that they will not compete for 317 Conservative Party seats.Concerns over the Lib Dems taking seats as a result of split voters led to the announcement today.
While Boris Johnson has talked down any possible alliance, Farage’s latest move has come in a bid to avert a 2nd EU Referendum. Such an outcome would be more than likely should the Opposition Party or Lib Dems move into Number 10.
Farage will, however, compete for Labour Party and Lib Dem seats in particular. The move comes in spite of the Brexit Party leader having concerns over Johnson’s Brexit deal.
While Boris Johnson has talked down any possible alliance, Farage’s latest move has come in a bid to avert a 2nd EU Referendum. Such an outcome would be more than likely should the Opposition Party or Lib Dems move into Number 10.
Farage will, however, compete for Labour Party and Lib Dem seats in particular. The move comes in spite of the Brexit Party leader having concerns over Johnson’s Brexit deal.
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