empty
 
 

Forex Analysis & Reviews: Hot forecast for GBP/USD on 10/11/2019 and a trading recommendation
time 11.10.2019 08:27 AM
time Relevance up to, 11.10.2019 08:15 PM

What happened yesterday with the pound can only be called euphoria, or ecstasy. No other epithets will reflect the fullness of emotions that forced traders to buy the pound en masse. This is the only way to describe the market reaction to the results of the meeting between Boris Johnson and Leo Varadkar. The prime ministers of Great Britain and Ireland were extremely optimistic about the meeting, and said that great progress had been achieved that would allow the resumption of negotiations between London and Brussels as soon as possible, as well as achieve mutual understanding on the divorce deal. That alone was enough for the pound to jump a little over two hundred points.

This image is no longer relevant

However, there is no doubt that the pound's growth is solely due to emotions. Neither Boris Johnson, nor Leo Varadkar, revealed the exact issues on which they found a compromise. But most importantly, this does not mean that Brussels will agree to take into account the agreements reached. Especially if they contradict the basic principles of the same agreement, which the House of Commons has already rejected three times. First you need to resume negotiations between London and Brussels, and today the meeting is scheduled for the main negotiator on the part of the European Union, Michel Barnier, and Brexit's Minister for Affairs, Steve Barclay. They should outline a plan of action for the early conclusion of a divorce agreement between London and Brussels. So the process is clearly delayed, and will not be so swift. You can be absolutely certain that it will not be easy.

This image is no longer relevant

Moreover, if we look at the statistics, the pound's growth, to put it mildly, was somewhat unreasonable. The fact is that the state of industry in the United Kingdom, at the very least, is worrying. Yesterday's data showed that the decline in industry deepened from -1.1% to -1.8%. The negotiations can inspire optimism and hope as much as you like, but in fact, the real state of affairs in the economy, just terrible, and it would be better if all these high-level meetings have begun to bear real fruit.

Industrial Production (UK):

This image is no longer relevant

There are no releases of macroeconomic today. So investors will have a great opportunity to carefully look at the real state of the British economy. No one will be pleased once it is clearly seen. Just another streamlined phrase about moving in the right direction, without any specifics, also somewhat reduce the optimism that was caused by yesterday's meeting of Boris Johnson and Leo Varadkar.

The GBP/USD pair once again found a foothold in the face of the value of 1.2200, slowing down and, as a fact, bouncing in the opposite direction. The volatility of the past day was extremely high amid the information flow, as I wrote above, as a result of which the quotation flew to the value of 1.2467, where it slightly slowed down. Looking at the trading chart in general terms, we see that an oblong correction is still being maintained in the market, with the price almost returning to a peak.

It is likely to assume that this kind of impulsive move has greatly overheated long positions, and a stop with a subsequent recovery move can be expected in the region of the available coordinates.

Concretizing all of the above into trading signals:

- We consider long positions in terms of residual reaction, where in case of price consolidation higher than 1.2470, we can head towards 1.2500.

- We consider short positions in terms of recovery, where within the range of 1.2415-1.2410, you can think about positions in the direction of 1.2380 -> 1.2350.

From the point of view of a comprehensive indicator analysis, we see that the indicators against the background of a recent surge in prices, all together turned upside down to signal purchases. It is likely to assume that in the event of a slowdown and subsequent recovery, we will see changes in indicators, starting from the minute interval.

This image is no longer relevant

Dean Leo,
Analytical expert of InstaForex
© 2007-2022
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

GBP/USD: Breaking forecast on November 29, 2022
The pound sterling decided not to wait for the release of macro data or other reasons for a correction. The currency has been on a losing streak since Monday mainly due to its overbought status...
Author: Dean Leo
01:41 2022-11-29 UTC--5
4438
EUR/USD: breaking forecast on November 28, 2022
The euro edged down and the greenback remained overbought on Friday. Investors kept looking for...
Author: Dean Leo
00:36 2022-11-28 UTC--5
5368
Breaking forecast for GBP/USD on November 25, 2022
Traders should not get upset about yesterday's stagnation. The situation will hardly change since, in the US, it is a weekend today.
Author: Dean Leo
01:06 2022-11-25 UTC--5
5308
Show more
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • Ferrari from InstaForex
    Top up your account with at least $1,000
    join the contest and win Ferrari
    F8 Tributo
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and win $1,000
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

November 29, 2022 : EUR/USD daily technical review and trading opportunities.

The market remained under Selling pressure until the recent bullish break above 1.0000 was achieved. Now the market remains under buying pressure until significant downside rejection occurs around

Mohamed Samy 18:32 2022-11-29 UTC+2

November 29, 2022 : EUR/USD Intraday technical analysis and trading plan.

Intensive bullish price action was demonstrated around the lower limit of the current movement channel. Initial bullish target around 1.0150 was already reached. Price action around this key-level should

Mohamed Samy 18:30 2022-11-29 UTC+2

November 29, 2022 : GBP/USD Intraday technical analysis and significant key-levels.

Further bullish continuation above 1.1765 was expected in previous articles specially after the newly-established ascending bottoms around 1.1150 and 1.1750 remain defended by the bulls. The next key-level

Mohamed Samy 18:30 2022-11-29 UTC+2

Ichimoku cloud indicator analysis on Gold on November 29th, 2022.

Gold price is trading around $1,750. Price has been very volatile over the last 24 hours as it has been bouncing up and down inside the range of $1,763

Alexandros Yfantis 16:55 2022-11-29 UTC+2

EUR/USD: Growing bearish sentiment limits upside potential

The euro wants to rise, but it can't yet. The dollar is tired of strengthening, but the "hawkish" rhetoric of the Federal Reserve officials keeps it afloat. The EURUSD pair

Marek Petkovich 16:47 2022-11-29 UTC+2

Ichimoku cloud indicator analysis on EURUSD on November 29th, 2022.

EURUSD remains in a bullish trend as price continues to respect the Kumo (cloud) and trades above it. We use the Ichimoku cloud indicator to identify key support and resistance

Alexandros Yfantis 16:44 2022-11-29 UTC+2

Short-term technical analysis on AUDUSD for November 29th, 2022.

AUDUSD is trading around 0.6727. Short-term trend remains bullish as price has not broken the sequence of higher highs and higher lows. Price has made a double

Alexandros Yfantis 16:40 2022-11-29 UTC+2

Bitcoin bounces towards resistance trend line.

Bitcoin bounced higher today towards $16,550 but price got rejected when it reached the red downward sloping resistance trend line. After the FTX scandal sell off, Bitcoin bulls seem unable

Alexandros Yfantis 16:36 2022-11-29 UTC+2

GBP/USD. Analysis for November 29. The British pound makes a new attempt to start a downward section of the trend

The wave marking for the pound/dollar instrument currently appears quite confusing, but it still does not call for any clarifications. We have a five-wave upward trend section, which has taken

Chin Zhao 16:26 2022-11-29 UTC+2

USD/CAD aims at 1.3600 psychological level post Canadian GDP

The USD/CAD pair rallied in the last hours as the Dollar Index rebounded and tries to erase minor losses. It's trading at 1.3547 at the time of writing

Ralph Shedler 15:41 2022-11-29 UTC+2
Can't speak right now?
Ask your question in the chat.