Wednesday, November 11, 2020

GBP / USD Analysis - Resistance Level 1.32000 So Determined

 To allay concerns over the Brexit issue, European Union (EU) Chief Consultant Michel Barnier has stated that they are redouble their efforts to reach an agreement between EU-UK relations in the future.

Meanwhile, developments in the UK, Finance Minister Rishi Sunak informed the progress of the Brexit negotiations as well as announcing economic stimulus plans following discussions at a recent policy meeting.

The focus of today's European session was on UK job data reports with mixed published readings. The average income index rose higher than expected. The rising unemployment rate is expected to affect the reading of the report.

On the price chart for the GBP / USD pair, the Pound, which moved stable earlier in the week, appeared to support the bullish attempt several times to test the resistance level of 1.32000.

However, the resistance still failed to break since the price dropped below that level in early September.

In today's trading (Tuesday), the price is seen moving above the Moving Average 50 (MA50) support level in the 1 hour time frame of the price movement which is still signaling a bullish trend.

A higher rise in the price beyond the resistance of 1.32000 is seen to lead to the resistance zone at 1.33000.

However, with the strengthening of the US dollar, it is likely that the price will return to lower levels.

A drop below the MA50 support level will signal a bearish trend with the price expected to fall around the RBS zone (resistance become support) 1.30600.

Next, the focus level of 1.30000 will be re-tested for price to determine a lower decline or be a support level for the price to rebound.