The stock market in Asia has had a good day, and investors have been encouraged by the words of the economic advisor of the White House Kudlow, according to which it is possible to reach agreement at the Trump / Xi meeting. Just yesterday, President Trump himself said he was "highly unlikely" that the US would not go on with customs. Shanghai Composite is growing 1 percent, and Nikkei225 gained 1.02%.
USD slightly gives way to risky currencies (SEK, AUD, NOK, NZD). EUR / USD is trading at 1.13, GBP / USD is holding at 1.2750, USD / JPY is climbing towards 113.90.
On Wednesday, the 28th of November, the European session looks calm in terms of macroeconomic data, but it might be an interesting day for people following Brexit progress. On Wednesday both the British government and the Bank of England will issue forecasts related to various scenarios of abandoning the European Union. In the afternoon we will have a portion of US data, including those concerning the sale of homes, crude oil stocks and, most importantly, GDP growth in the third quarter.
GBP/USD analysis for 28/11/2018:
This morning the British Treasury will publish Brexit forecasts. In the report, the global investors will read about various possible scenarios and how the United Kingdom will come out in relation to the rest of the European Union countries. Similar information will be released by the Bank of England in the afternoon. However, this one will focus more on how different possible scenarios will affect interest rate policy. The publication will take place along with the regularly issued Financial Stability Report.
Let's now take a look at the GBP/USD technical picture at the H4 time frame chart before the data are released. The market has bounced from the technical support at the level of 1.2723, but the bounce is weak and shallow as the market participants await the data to be released. The nearest technical resistance is seen at the level of 1.2762, but the key intraday resistance is the zone between the levels of 1.2795 - 12820. The weak and negative momentum does not help the bulls, but in the case of a positive news and data, the price of GBP might move through the resistance levels.
