Thursday, November 19, 2020

Ouch! Why is GBP / USD turning this back?

 Pound Sterling continues to experience falling values ​​at the opening of trading in the Asian session today following the decline that has been in effect in the previous session. What happened?

The situation before this gave hope to the breeders of the Brexit negotiations, but now it is again tainted by unfavorable reports that have tarnished the confidence of the breeders.

The European Union (EU) leader asked the European Union to lay out a no-deal Brexit draft to stock up on the worst case scenario of a negotiation decision.

The EU kingdom is seen as increasingly disappointed by trade, safety and maritime issues that continue to fail to reach agreement.

In fact, it can be seen the reaction of traders in the market on the chart of the GBP / USD pair where the price has rebounded after testing the high level of 1.33000 in the resistance zone in the New York session.

Prior to that in the European session, prices have triumphantly flaunted gains after UK inflation data posted a good reading. However, bulls are unsuccessful for long before a decline is seen in the next session.

Continued in the Asian session this morning, the price continues to make a decline below the support level of the Moving Average 50 (MA50) on the frame of the 1 hour period which signals the beginning of a change in the bearish trend.

A decline is expected to head to the support zone in the 1.32000-1.31500 price range before signaling the direction of the next move.

Should the lower slide continue, the price support zone is seen at around 1.30600.

However, if the price is still successful in continuing its original rise, the resistance zone of 1.33000 will be tested once again with the price forecast to break it.

A higher hike will record a new 11-week high-profile chance of reaching a level of 1.35 000.