empty
 
 

Forex Analysis & Reviews: Overview of GBP/USD on October 11th. Forecast according to the "Regression Channels". The paradoxical pound
time 11.10.2019 07:32 AM
time Relevance up to, 12.10.2019 07:27 AM

4-hour timeframe

This image is no longer relevant

Technical data:

The upper channel of linear regression: direction – up.

The lower channel of linear regression: direction – down.

The moving average (20; smoothed) – up.

CCI: 176.7742

Over the past day, the British pound rose by 250 points. Some traders might have thought this morning when they opened the terminal that London and Brussels had signed a "deal" overnight and would now part ways in peace, or that Boris Johnson has resigned as UK Prime Minister. However, nothing of the kind happened yesterday. So why did the pound soar?

Of the factors that are even remotely reminiscent of the reasons, we can single out the negotiations between Johnson and the Prime Minister of Ireland Leo Varadkar, during which the parties agreed to continue negotiations further. Both sides have traditionally noted "progress in negotiations", and, in fact, everything. Of course, the issues addressed concerned the Northern Irish border and the life of both countries on the island of Ireland after the "divorce" of the Kingdom and the Alliance. Is it this information that somehow caused traders to actively buy the pound? Because nothing else happened last night either in the UK or in the States. "Successful" – current status of the negotiations with China according to Trump? Why then did the euro currency not react to this "luck" at all? In general, it is impossible to say now exactly what led to the rise of the pound. There may be a whole set of factors, some of which may not be visible to ordinary traders. Technical reasons, the actions of major players in the foreign exchange market, rumors, insider information – all this could lead to a sharp increase in the British currency. We recommend considering the current situation from a slightly different perspective. If the rise was not a trivial accident, then there are reasons. Since the pound has risen in price, is this perhaps a good signal for Brexit? If so, in the next few days, the pound will hold on to the positions won from the dollar. If there are no positive signals, then the fall of the pound/dollar pair may resume today.

The calendar of macroeconomic events in the UK is empty today, and information about consumer confidence, which cannot be called super important even potentially, will come from across the ocean. After such a sharp increase in the pair, we expect a downward correction, and in the coming days, traders and experts will need to find out what were the true reasons for the strengthening of the British currency. If they simply do not exist, then very soon we may witness a resumption of the downward trend. There are no visible reasons for such a strong growth of the pair, as we have already said.

Nearest support levels:

S1 – 1.2421

S2 – 1.2390

S3 – 1.2360

Nearest resistance levels:

R1 – 1.2451

R2 – 1.2482

R3 – 1.2512

Trading recommendations:

The GBP/USD pair is likely to begin to adjust after yesterday's growth. In any case, without a visible fundamental background and after strengthening by 250 points, it is dangerous to buy the pound. Thus, it is recommended to wait for the market situation to calm down, and sales can be returned after fixing the bears below the moving average.

In addition to the technical picture, fundamental data and the time of their release should also be taken into account.

Explanation of the illustrations:

The upper channel of linear regression – the blue lines of the unidirectional movement.

The lower channel of linear regression – the purple lines of the unidirectional movement.

CCI – the blue line in the regression window of the indicator.

The moving average (20; smoothed) – blue line on the price chart.

Murray levels – multi-colored horizontal stripes.

Heiken Ashi – an indicator that colors bars in blue or purple.

Paolo Greco,
Chuyên gia phân tích của 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.

  • Giao dịch khôn ngoan, thành công
    Nạp tiền vào tài khoản của bạn với ít nhất $ 500, đăng ký cuộc thi và có cơ hội giành được các thiết bị di động.
    THAM GIA CUỘC THI
  • Ferrari từ InstaForex
    Nạp tiền vào tài khoản của bạn với ít nhất 1.000
    tham gia cuộc thi và giành chiến thắng Ferrari
    F8 Tributo
    THAM GIA CUỘC THI
  • Tiền gửi lần truy cập
    Gửi vào tài khoản của bạn 3.000 đô la và giành được 1.000 đô la
    THAM GIA CUỘC THI
  • 100% tiền thưởng
    Cơ hội duy nhất của bạn để nhận 100% tiền thưởng khi gửi tiền
    NHẬN THƯỞNG
  • 55% Tiền thưởng
    Đăng ký tiền thưởng 55% cho mỗi lần gửi tiền của bạn
    NHẬN THƯỞNG
  • 30% tiền thưởng
    Nhận 30% tiền thưởng mỗi khi bạn nạp tiền vào tài khoản của mình
    NHẬN THƯỞNG

Recommended Stories

Bitcoin consolidated above the $16.1k key resistance level: what to expect in the new trading week

The new trading week on the crypto market started with minimal price movements and slight bearish dominance. In general, the classic post-weekend situation with low trading volumes and minimal volatility

Artem Petrenko 11:26 2022-11-28 UTC+2

NZDUSD Potential for Bullish Continuation | 28th November 2022

On the H4 chart, we have a bullish bias with the price moving above the Ichimoku cloud and has broken out of the ascending channel. If this bullish momentum continues

Dean Leo 11:14 2022-11-28 UTC+2

AUDUSD Potential for Bullish Continuation | 28th November 2022

Looking at the H4 chart, my overall bias for ADUSD is bullish due to the current price being above the Ichimoku cloud, indicating a bullish market. Expecting price to continue

Dean Leo 11:11 2022-11-28 UTC+2

Forex forecast 11/28/2022 EUR/USD, GBP/USD, AUD/USD, Oil, Gold, SP500 and Bitcoin from Sebastian Seliga

Let's take a look at the technical picture of EUR/USD, GBP/USD, AUD/USD, Oil, Gold, SP500 and Bitcoin

Sebastian Seliga 11:10 2022-11-28 UTC+2

ETHUSD Potential For Bearish Continuation | 28th November 2022

Looking at the H4 chart, my overall bias for ETHUSD is bearish due to the current price being below the Ichimoku cloud, indicating a bearish market .If this bearish momentum

Dean Leo 11:09 2022-11-28 UTC+2

RBA governor sees better chance of economy's soft landing than peers

The Australian dollar fell after the RBA governor said Australia had a better chance of a soft landing of the economy than any other developed country. First of all, Philip

Jakub Novak 10:39 2022-11-28 UTC+2

Bitcoin: Bullish recovery still possible, with stronger crypto industry

Bitcoin remains under pressure, drawing a suspiciously bearish flag pattern. If this figure works out, the level near $14,000 will not hold the price. It is worth noting that

Ekaterina Kiseleva 10:39 2022-11-28 UTC+2

Technical Analysis of ETH/USD for November 28, 2022

Crypto Industry News: "Metaverse" is one of the main contenders for the 2022 Oxford Word of the Year, the Oxford University Press (OUP) announced, in a sign that this particular

Sebastian Seliga 10:08 2022-11-28 UTC+2

Technical Analysis of BTC/USD for November 28, 2022

Crypto Industry News: Russian President Vladimir Putin has criticized the monopoly in global financial payment systems and called for the creation of an independent and blockchain-based settlement network, speaking

Sebastian Seliga 10:07 2022-11-28 UTC+2

Technical Analysis of GBP/USD for November 28, 2022

Technical Market Outlook: The GBP/USD pair has broken above the 161% Fibonacci extension seen at the level of 1.2086, so the ABC corrective cycle to the upside had been updated

Sebastian Seliga 10:06 2022-11-28 UTC+2
Không thể nói chuyện ngay bây giờ?
Đặt câu hỏi của bạn trong phần trò chuyện.