Therefore, it’s not surprising that GBP/USD has spiked following Monday’s headlines from chief EU Brexit negotiator Michel Barnier that an agreement is “realistic” in 6-8 weeks. A subsequent report from the Guardian that a Brexit summit was likely to be scheduled for mid-November added some meat to Barnier’s comments. While we’ve seen similar “false dawns” before, rhetoric and actions around a potential Brexit deal have taken on a distinctly positive tone – see GBP/USD Hits 3-Week Highs on Brexit Chatter) – raising the prospects of a GBP-positive deal in the coming weeks.
There are also a couple of economic developments to watch this week. Tuesday’s trade brings the monthly UK jobs report, with economists expecting +3.6k net new jobs and wages to rise at 2.5% year-over-year. Then, Thursday brings the BoE meeting, though having just raised its benchmark interest rate to 0.75% last month, little intrigue is likely.
Technically speaking, GBP/USD has spiked above 1.30 on the headlines to peak above both its off the early May high and its 50-day moving average. A close near Monday’s highs will give bulls more confidence that the trend is indeed turning higher. In that case, the next level of resistance to watch will be the late-July highs and the 100-day moving average around 1.3200. Conversely, a failure to hold Monday’s breakout could lead a small dip, but the near-term rising around 1.2900 should provide an intraday floor as long as Brexit rhetoric maintains its positive tone.
1.We can see price breaking downwards the and staying to environment.
2.We can also notice the downtrend line that price is fighting right now to establish which coincides with the EMA50.
3.Buying power is not so strong as the first spike up one week ago as we can see from the buying .
4.Price is under the EMA200 and shorts are favored.
5.We can see previous support turning in resistance and we may form a but still there is no divergence at the .
6.Here we are using the CM TREND BEARS strategy to indicate the overall and the current war between the trends at this consolidation we are having this last week.
IF THE 1,3000 LEVEL BREAKS WE ARE LOOKING FOR 1,2900 AND 1,2850-1,2800 AREA IN EXTENSION
ENTRY AT 1,300-1.2990 LEVEL
BUY STOP AT 1,3060
IF 1,3000 LEVEL HOLD
ENRTY LONG AT 1,3050
STOP LOSS AT 1,2990
TP1 AT 1,3100 LEVEL
TP2 1,3200 IN EXTENSION
HAPPY TRADING AND HAPPY PROFITS TO EVERYBODY!!
KEEP FOLLOWING FOR MORE PROFITS AND IDEAS!
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