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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.


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.


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.


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.


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.


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