Antony_NPBFX
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GBP/USD: the pound develops corrective decline 24.11.2021
Good afternoon, dear forum visitors!
NPBFX offers the latest release of analytics on GBP/USD for a better understanding of the current market situation and more efficient trading.
Current trend
The British pound is trading lower against the US currency during the morning session, being under pressure since last Friday. The pound finds nothing to counter the rising dollar, despite some very optimistic evidence of the strength of the UK economy. In particular, yesterday investors reacted to the publication of statistics on business activity. In the manufacturing sector, activity in the UK in November rose from 57.8 to 58.2 points, ahead of forecasts of a decline to 57.3 points. Services PMI, in turn, slightly decreased from 59.1 to 58.6 points, but remains at quite acceptable levels.
Positive statistics from the UK allows us to maintain expectations regarding further tightening of monetary policy by the Bank of England. Markets expect the British regulator to make a decision on this matter already at the December meeting.
Investors are focused on macroeconomic statistics from the USA today. Among the most important indicators are the dynamics of durable goods orders in November, annual GDP data for Q3 2021 and statistics on personal income and expenses of American citizens for October.
Support and resistance
On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range expands from below, making way for new local lows for the "bears". MACD is declining keeping a weak sell signal (located below the signal line). Stochastic keeps a downward direction but is already approaching its lows, which indicates the risks of oversold GBP in the ultra-short term.
Resistance levels: 1.3400, 1.3450, 1.3500, 1.3550.
Support levels: 1.3341, 1.3300, 1.3250, 1.3200.
Trading tips
To open long positions, one can rely on the rebound from the support level of 1.3341 with the subsequent breakout of 1.3400. Take-profit – 1.3500. Stop-loss – 1.3341. Implementation time: 2-3 days.
The breakdown of 1.3341 may serve as a signal for new sales with the target at 1.3250. Stop-loss – 1.3400.
Use more opportunities of the NPBFX analytical portal: glossary
Beginning traders certainly face a lot of specialized concepts and lexicon on FOREX, which are often not fully been understood. Swap, tick, hedge, margin calls are often unfamiliar to beginning traders. But the lack of knowledge of these fundamentals make a competent market vision impossible. So glossary on the NPBFX analytical portal could be an excellent helper in this case, which contains all the main definitions with explanations in a compact and accessible form. All concepts are arranged in alphabetical order, so that you can easily and quickly find and explore a new concept for yourself.
If you have any questions about trading instruments, you can always ask an analyst in the online chat on the portal and get a free consultation of an experienced specialist.
Use the current recommendations of analysts on GBP/USD and trade efficiently with NPBFX.
Good afternoon, dear forum visitors!
NPBFX offers the latest release of analytics on GBP/USD for a better understanding of the current market situation and more efficient trading.
Current trend
The British pound is trading lower against the US currency during the morning session, being under pressure since last Friday. The pound finds nothing to counter the rising dollar, despite some very optimistic evidence of the strength of the UK economy. In particular, yesterday investors reacted to the publication of statistics on business activity. In the manufacturing sector, activity in the UK in November rose from 57.8 to 58.2 points, ahead of forecasts of a decline to 57.3 points. Services PMI, in turn, slightly decreased from 59.1 to 58.6 points, but remains at quite acceptable levels.
Positive statistics from the UK allows us to maintain expectations regarding further tightening of monetary policy by the Bank of England. Markets expect the British regulator to make a decision on this matter already at the December meeting.
Investors are focused on macroeconomic statistics from the USA today. Among the most important indicators are the dynamics of durable goods orders in November, annual GDP data for Q3 2021 and statistics on personal income and expenses of American citizens for October.
Support and resistance
On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range expands from below, making way for new local lows for the "bears". MACD is declining keeping a weak sell signal (located below the signal line). Stochastic keeps a downward direction but is already approaching its lows, which indicates the risks of oversold GBP in the ultra-short term.
Resistance levels: 1.3400, 1.3450, 1.3500, 1.3550.
Support levels: 1.3341, 1.3300, 1.3250, 1.3200.
Trading tips
To open long positions, one can rely on the rebound from the support level of 1.3341 with the subsequent breakout of 1.3400. Take-profit – 1.3500. Stop-loss – 1.3341. Implementation time: 2-3 days.
The breakdown of 1.3341 may serve as a signal for new sales with the target at 1.3250. Stop-loss – 1.3400.
Use more opportunities of the NPBFX analytical portal: glossary
Beginning traders certainly face a lot of specialized concepts and lexicon on FOREX, which are often not fully been understood. Swap, tick, hedge, margin calls are often unfamiliar to beginning traders. But the lack of knowledge of these fundamentals make a competent market vision impossible. So glossary on the NPBFX analytical portal could be an excellent helper in this case, which contains all the main definitions with explanations in a compact and accessible form. All concepts are arranged in alphabetical order, so that you can easily and quickly find and explore a new concept for yourself.
If you have any questions about trading instruments, you can always ask an analyst in the online chat on the portal and get a free consultation of an experienced specialist.
Use the current recommendations of analysts on GBP/USD and trade efficiently with NPBFX.