empty
 
 

Forex Analysis & Reviews: GBP/USD. Overview for December 6. Does the British pound have a bright future?
time 06.12.2022 04:04 AM
time Relevance up to, 07.12.2022 02:14 AM

This image is no longer relevant

On Monday, the GBP/USD currency pair also started to adjust after the euro. Except for the retail sales report, which only applied to the European Union, the British pound had exactly the same foundation as the euro. Thus, a "neutral" business activity index was also published in Britain, and news stories in the United States focused on both currency pairs. Therefore, it was logical and natural for the pound/dollar pair to decline on Monday. Unlike its movements from the previous week or weeks. Unfortunately, the legitimacy of the dollar's growth yesterday leaves us in the dark as to whether or not the market is now prepared to stop making illogical purchases of the pound in favor of more sensible purchases of the dollar. After all, today's macroeconomic and fundamental backgrounds won't exist, so the pair's growth may resume. It might start up again after a few days. As a result, it is still essential to carefully watch the "technique."

And the "technique" is still almost entirely clear at this point. On the 4-hour and 24-hour TF, every indicator is pointing upward. A consolidation below the moving average line might be the earliest warning sign to sell. Even so, it won't be regarded as a powerful signal. However, every powerful movement begins with a small step. Therefore, you must first overcome the moving average before anticipating a stronger pair fall. Technically, everything will remain absurdly simple if the subsequent attempt to overcome the moving fails. The upward trend will continue, and it will be possible to purchase a pair more using the Heiken Ashi indicator's upward reversals.

Whatever perspective you take, the dollar should increase.

As was already mentioned, there won't be many significant events this week in either the UK or the USA. The US ISM services sector yesterday released a fairly significant index of business activity, which led to a strengthening of the dollar. There won't be any additional significant macroeconomic events this week. The "silence mode" among the members of the monetary committees is also activated because even important speeches are not scheduled due to the impending meetings of the BA and the Fed.

From our perspective, the time is right for a downward correction. However, despite our patiently waiting for it for two weeks, the market has continued to demand a pair. So, generally speaking, we stick with what we previously believed. Fundamentally speaking, the correction ought to be strong at the moment. From a technical perspective, the pair can keep expanding indefinitely.

The dollar may benefit little, even from the Fed and BA meetings. The news that the Federal Reserve will start to slow down the pace of tightening monetary policy shocked the market greatly. Still, these disappointments have already been resolved, giving the dollar a chance to rise before the meeting of the American regulator. The market steadfastly ignored the previous eight rate increases, so it can ignore the ninth, making life easier with the Bank of England. The currency pair has enough time to move up and down because the meetings are still one and a half to two weeks away. Additionally, the British regulator can "moderate its enthusiasm" and only increase the rate by 0.5% in December. Further, this could lead to traders' dissatisfaction and a sell-off of the pound, which has been rising unreasonably recently along with everything else.

This image is no longer relevant

Over the previous five trading days, the GBP/USD pair has experienced an average volatility of 180 points. This value for the dollar/pound exchange rate is "very high." As a result, on Tuesday, December 6, we anticipate movement constrained by the levels of 1.2000 and 1.2362. The Heiken Ashi indicator's upward reversal indicates that the upward movement has resumed.

Nearest levels of support

S1 – 1.2085

S2 – 1.1963

S3 – 1.1841

Nearest levels of resistance

R1 – 1.2207

R2 – 1.2329

R3 – 1.2451

Trading Suggestions:

In the 4-hour timeframe, the GBP/USD pair has begun a new round of correction. Therefore, in the event of an upward reversal of the Heiken Ashi indicator, new buy orders with targets of 1.2329 and 1.2362 should be considered. With targets of 1.2000 and 1.1963, open sell orders should be fixed below the moving average.

Explanations of the illustrations:

Linear regression channels help determine the current trend. The trend is strong if both are directed in the same direction.

The moving average line (settings 20.0, smoothed) – determines the short-term trend and the direction in which trading should be conducted now.

Murray levels are target levels for movements and corrections.

Volatility levels (red lines) are the likely price channel in which the pair will spend the next day, based on current volatility indicators.

The CCI indicator – its entry into the oversold area (below -250) or into the overbought area (above +250) means that a trend reversal in the opposite direction is approaching.

Paolo Greco,
Chuyên gia phân tích của InstaForex
© 2007-2023
GBPUSD
Great Britain Pound vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

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.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    THAM GIA CUỘC THI
  • Tiền gửi lần truy cập
    Ký quỹ tài khoản của bạn với $3000 và nhận được $10000 nhiều hơn!
    Trong Tháng 01 chúng tôi xổ $10000 trong chiến dịch Chancy Deposit!
    Có được một cơ hội giành chiến thắng bằng việc ký quỹ $3000 vào một tài khoản giao dịch. Đáp ứng được điều kiện này, bạn trở thành một người tham gia chiến dịch.
    THAM GIA CUỘC THI
  • 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
  • 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

EUR/USD. Preview of the week. Hot days of February

In the coming days, the Fed and the ECB will hold their first meetings of 2023 and the results will cause increased volatility in all dollar pairs. The EUR/USD will

Irina Manzenko 16:03 2023-01-29 UTC+2

EUR/USD. Results of the week. The scales remained in balance

Last week, key macro data could not tip the scales in either direction. Initially, bulls took the initiative, which renewed the 9-month high. Then bears took the initiative and pulled

Irina Manzenko 15:27 2023-01-29 UTC+2

GBP/USD. Overview for January 29. The week of judgment for the British pound.

On Friday, the GBP/USD currency pair remained very close to its regional peak of 1.2451. The price made two unsuccessful attempts to break through this barrier. Following the initial bounce

Paolo Greco 13:26 2023-01-29 UTC+2

EUR/USD. Overview for January 29. The upcoming week is crucial for both the dollar and the euro.

The EUR/USD currency pair finished the week exactly as it had begun. Another ineffective attempt to correct, a further drop in the moving average, which has been closely related

Paolo Greco 13:13 2023-01-29 UTC+2

Britain is going through a difficult period.

What conclusions can we draw now that another week on the foreign currency market has come to an end? Unfortunately, there aren't many conclusions because this week, particularly

Chin Zhao 12:53 2023-01-29 UTC+2

GBP/USD. Analysis of the trading week of January 23-27. COT report. The British pound is again aiming for growth.

Over the previous week, the GBP/USD currency pair has traded more sideways than up or down, but overall it has maintained an upward trend. As a result, there has been

Paolo Greco 11:49 2023-01-29 UTC+2

EUR/USD. Analysis of the trading week of January 23–27. COT report. The euro remains at peak levels ahead of the ECB and Fed meetings.

Following a correction to the crucial level, the EUR/USD currency pair resumed its ascent over the current week. Since the present technical disposition is most readily apparent on the 24-hour

Paolo Greco 11:37 2023-01-29 UTC+2

ECB rates to peak longer than Fed rates, pushing EURUSD above 1.2

Forex is a place where questions never end. In the first phase of monetary tightening, investors worry about how quickly rates will rise. Then, how high they will grow. Finally

Marek Petkovich 15:10 2023-01-27 UTC+2

Does the US debt ceiling issue pose a threat to the world economy?

Additionally, US President Joe Biden blasted the Republicans, alleging that they want to use the debt ceiling as leverage in economic negotiations, as the markets were getting ready

Jakub Novak 12:11 2023-01-27 UTC+2

The euro has a good chance

According to a survey of analysts, the European Central Bank's decision to raise interest rates by 50 basis points is already final, so the euro has a high probability

Jakub Novak 12:01 2023-01-27 UTC+2
Không thể nói chuyện ngay bây giờ?
Đặt câu hỏi của bạn trong phần trò chuyện.