GBP / USD pair
There are no data points for the US employment rate of 44 points. The intersection point of the correlation of the correlation of the curve with the indicator. It can be deepened to the Fibonacci level of 38.2% at 1.2910. The correction may decline to the support of the MACD line on the four-hour chart at 1.2863.
Today, the forecast for the index of business activity in the UK service sector is 53.4 in October against 53.9 a month earlier. This can also be a factor in favor of the downward movement in the near future. On Wednesday morning, the results of the elections to the US Congress will be known. They will be the cause of the expected strong speculative movements in the market. At the same time, Friday is expected to yield positive economic data for the UK. The GDP for the third quarter is expected to increase by 0.6% versus 0.4% in the 2nd quarter. The manufacturing production may show an increase of 0.1% in September after a decline ofem-0.2% in August. That is, if major players want to play strongly against the dollar, they will have a lot of formal justifications in reserve. The first goal in the growth scenarios is the resistance of the embedded trend line in the price channel around 1.3178.
The downward movement sets the next target for the players at 1.2820, which is the area of coincidence of the Fibonacci level with the support of the graphic trend line for the daily support in the underlying trend line at 1.2602.
With such heated political struggle in the United States, it is almost impossible to predict the reaction of the market to the election results, whatever they may be. In general, it is believed that if the Democrats win with a slight advantage, although a victory with a big advantage is not predicted for any wing then the dollar will weaken. But this is contrary to the discussions two years ago during the presidential elections, it was believed that the victory of Democrat Clinton would strengthen the dollar.
In general, we believe that after the completion of the growing speculative growth in the results of the elections, that is if this growth takes place. The markets will return to the strengthening the dollar on all fronts. Only in the history of the pound of great importance are negotiations on Brexit.
The material has been provided by InstaForex Company - www.instaforex.com