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,
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.

Breaking forecast for EUR/USD on December 2, 2022
The market almost ignored the eurozone unemployment data, which turned out to be better than expected.
Author: Dean Leo
01:02 2022-12-02 UTC--5
4423
GBP/USD: Breaking forecast on December 1, 2022
Following the release of preliminary data on inflation in the eurozone, the dollar should have been strengthened significantly.
Author: Dean Leo
01:15 2022-12-01 UTC--5
4768
Breaking forecast for EUR/USD on November 30, 2022
Preliminary inflation reports in the main eurozone economies pointed to a considerable slowdown in consumer price growth.
Author: Dean Leo
01:08 2022-11-30 UTC--5
4648
Show more
  • 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

Breaking forecast for EUR/USD on December 2, 2022

The euro managed to climb above the 5-month high. However, the rise could hardly be explained by a decline in the eurozone unemployment rate to 6.5% from 6.6%. Economists

Dean Leo 07:02 2022-12-02 UTC+2

GBP/USD: Breaking forecast on December 1, 2022

Following the release of preliminary data on inflation in the eurozone, the dollar should have been strengthened significantly. Yet, those were its main competitors, the euro and the pound, that

Dean Leo 07:15 2022-12-01 UTC+2

Breaking forecast for EUR/USD on November 30, 2022

In November, the market was mainly driven by the expectations of possible changes in the ECB's and Fed's policies. At a particular moment, traders believed that the Fed would slacken

Dean Leo 07:08 2022-11-30 UTC+2

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

Dean Leo 07:41 2022-11-29 UTC+2

EUR/USD: breaking forecast on November 28, 2022

Although the euro edged down on Friday, the market remained flat due to a day off in the United States. The euro went down despite a clearly overbought greenback

Dean Leo 06:36 2022-11-28 UTC+2

Gold: downside movement below 1,749

The price of gold dropped after its strong growth and now it stands right above the 1,749 key support. It's trading at 1,751 at the time of writing

Ralph Shedler 13:51 2022-11-25 UTC+2

Breaking forecast for GBP/USD on November 25, 2022

Most capital of the financial markets is controlled by the US financial institutions, including various banks and funds. That is why if US traders have a day off, trading activity

Dean Leo 07:06 2022-11-25 UTC+2

Breaking forecast for EUR/USD on November 24

There were all signs of a correction, including the US dollar oversold conditions and positive forecasts for the US macroeconomic reports. However, the publication of the eurozone preliminary data

Dean Leo 07:24 2022-11-24 UTC+2

Breaking forecast for GBP/USD on November 23, 2022

Since the US dollar is extremely oversold, the market urgently needs a correction. On Monday, there were prerequisites for this. However, the market returned to its previous quite high levels

Dean Leo 07:12 2022-11-23 UTC+2

Breaking forecast for EUR/USD on November 22, 2022

The forex market needed a correction. Therefore, it used Germany's PPI data, which hardly ever causes such a strong impact, as the opportunity to enter it. However, once it became

Dean Leo 06:38 2022-11-22 UTC+2
Không thể nói chuyện ngay bây giờ?
Đặt câu hỏi của bạn trong phần trò chuyện.