GBP / USD. November 28. Results of the day. Pound sterling is growing moderately, but this is not enough to change the trend
November 29, 2018 6:21 am
4 hour timeframe
The amplitude of the last 5 days (high-low): 56p – 161p – 84p – 68p – 99p.
Average amplitude for the last 5 days: 94p (95p).
The British pound sterling has been slightly corrected for today, but this correction can not be called strong. The GBP / USD currency pair cannot move away from its local minima located in the area of 1.1270 – 1.2750. With a high probability, if this support zone does not stand, then the pound sterling can go to a new downward rally. Of course, much will depend, in fact, as before, on the results of Brexit, and more precisely on the results of voting on the bill on Brexit in the British Parliament. An orderly version of Brexit can put an end to the fall of the British currency, which has been going on for several years. At the same time, if the States continues to escalate the trade conflict, and the Fed stops raising the key rate in the foreseeable future, these can create substantial support for the British currency and all competitor currencies of the dollar. Today, in addition to the speech of Jerome Powell, the speech of the head of the Bank of England Mark Carney will also take place. And again, traders will expect from him not even information on monetary policy, but rather an opinion on the current state of affairs in the Brexit procedure and the possible consequences of the various outcomes of this procedure. Perhaps, there will be no reaction to Carney’s performance. Anyway, technically, the pair definitely remains in a downtrend and can resume it in the next few hours. Speeches by Carney and Powell can help traders with this. It will be possible to talk about an uptrend not earlier than the bulls of the lines Kijun-sen and Senkou Span B. overcome the bulls.
Trading recommendations:
The GBP / USD currency pair has been slightly corrected, there is no signal to complete the correction yet. A reversal of the MACD down indicator will indicate a resumption of the downward movement with targets at 1.2739 and 1.2682, as well as a rebound in the price from the critical line.
Buy positions can be considered no earlier than overcoming the Ichimoku cloud, since the key lines of the Ichimoku indicator are located close to each other. As before, we believe that this will require a significant fundamental background.
In addition to the technical picture, the fundamental data and the time of their release should also be considered.
Explanation of the illustration:
Ichimoku indicator:
Tenkan-sen – the red line.
Kijun-sen – the blue line.
Senkou Span A – light brown dotted line.
Senkou Span B – light purple dotted line.
Chinkou Span – green line.
Bollinger Bands indicator:
3 yellow lines.
MACD Indicator:
Red line and histogram with white bars in the indicator window.
The material has been provided by InstaForex Company – www.instaforex.com
4 hour timeframe
The amplitude of the last 5 days (high-low): 56p – 161p – 84p – 68p – 99p.
Average amplitude for the last 5 days: 94p (95p).
The British pound sterling has been slightly corrected for today, but this correction can not be called strong. The GBP / USD currency pair cannot move away from its local minima located in the area of 1.1270 – 1.2750. With a high probability, if this support zone does not stand, then the pound sterling can go to a new downward rally. Of course, much will depend, in fact, as before, on the results of Brexit, and more precisely on the results of voting on the bill on Brexit in the British Parliament. An orderly version of Brexit can put an end to the fall of the British currency, which has been going on for several years. At the same time, if the States continues to escalate the trade conflict, and the Fed stops raising the key rate in the foreseeable future, these can create substantial support for the British currency and all competitor currencies of the dollar. Today, in addition to the speech of Jerome Powell, the speech of the head of the Bank of England Mark Carney will also take place. And again, traders will expect from him not even information on monetary policy, but rather an opinion on the current state of affairs in the Brexit procedure and the possible consequences of the various outcomes of this procedure. Perhaps, there will be no reaction to Carney’s performance. Anyway, technically, the pair definitely remains in a downtrend and can resume it in the next few hours. Speeches by Carney and Powell can help traders with this. It will be possible to talk about an uptrend not earlier than the bulls of the lines Kijun-sen and Senkou Span B. overcome the bulls.
Trading recommendations:
The GBP / USD currency pair has been slightly corrected, there is no signal to complete the correction yet. A reversal of the MACD down indicator will indicate a resumption of the downward movement with targets at 1.2739 and 1.2682, as well as a rebound in the price from the critical line.
Buy positions can be considered no earlier than overcoming the Ichimoku cloud, since the key lines of the Ichimoku indicator are located close to each other. As before, we believe that this will require a significant fundamental background.
In addition to the technical picture, the fundamental data and the time of their release should also be considered.
Explanation of the illustration:
Ichimoku indicator:
Tenkan-sen – the red line.
Kijun-sen – the blue line.
Senkou Span A – light brown dotted line.
Senkou Span B – light purple dotted line.
Chinkou Span – green line.
Bollinger Bands indicator:
3 yellow lines.
MACD Indicator:
Red line and histogram with white bars in the indicator window.
The material has been provided by InstaForex Company – www.instaforex.com
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