ZuluTrade Blog
Image

Market View

Trading analysis on GBPUSD

Friday, November 3, 2017 10:51 AM GMT

Many users requested to update our trading view on the Cable, therefore, we reviewed the whole picture of the pair beginning from monthly to hourly TF. Yesterday BOE increased interest rates from 0.25% to 0.50% for the first time in ten years.  Britain's financial growth decelerated obviously since the Brexit referendum. These factors pushed aggressively the Pound lower against Dollar.

On the monthly TF chart, cable failed to violate the long-term trendlines (T1 + T2) and 21 EMA. The confluence of resistance was strong. It’s important the price stays above the 5 EMA on the monthly candlestick. If it closes below, then it will initiate further correction.

Monthly

Heading to the weekly TF, it’s obviously critical for the pair to keep moving inside the rising channel and above 21 EMA. In addition, RSI (5) confirms the uptrend, however; the level 1.3027 needs to stay intact. If the weekly candlestick closes below it, then it will target 1.277.

Weekly

Reviewing the daily TF, it's clear how the rising channel works as a support. In addition, 200 SMA is rising too which acts as an additional major support for the uptrend.

Daily

Lastly, going to the hourly TF, the possible Elliot wave structure indicates the possibility of a lower low, the 5th wave, near to the already mentioned support. This zone may give a decent buying opportunity.

Hourly

Today, we are expecting important US data.  The Nonfarm Payrolls numbers and the unemployment rate will show how well the employment market is performing in the present financial conditions. Therefore, traders should be careful because the market will be volatile during the announcements.

 

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.