Overview:
- The market opened below the weekly resistance of 1.2488. Last week, it continued to move downwards from the level of 1.2488 to the bottom around the spot of 1.2400. This week, the first resistance level is seen at 1.2488 followed by 1.2614, while daily support 1 is seen at the levels of 1.2314 and 1.2206. The GBP/USD pair broke support which turned to strong resistance at 1.2488 since UK vote (23rd June 2016). Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the support (1.2400) which is expected to act as major resistance in coming hours. This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment. Amid the previous events, the GBP/USD pair is still moving between the levels of 1.2400 and 1.2206. Therefore, the major resistance can be found at 1.2400 providing a clear signal to sell with a target seen at 1.2400. If the trend breaks the minor support at 1.2400, the pair will move downwards continuing the bearish trend development to the levels of 1.2314 and 1.2206 on coming days. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 1.2488 this week.
Comment:
- DateTime : Tuesday, November 8th, 2016 | All Day.
- Currency: US Dollar - (USD).
- Impact: High impact expected.
- Detail: Presidential Election. Voters will elect the 46th President of the United States.
