On Tuesday, November 16, GBP/USD continued the correction on the 30M time frame. However, the downward trend line is no longer valid, as the quotes broke above it. Still, it is not enough for the trend to reverse. During the European and American sessions, the pair was trading mixed. In early trades, the British pound was rising while later in the day, the US dollar took the lead. However, volatility was moderate with quotes fluctuating about 66 pips. As for macroeconomic statistics, markets saw some interesting releases. The first tick in the image below marks the moment when the UK unemployment and wages growth reports were published. These reports showed better-than-expected data which pushed the pound sterling higher. However, it failed to maintain the bullish bias. In the afternoon trades, the American dollar got boosted by the upbeat reports on industrial production and retail sales in the United States. These publications are marked with the second and third ticks in the chart.
On Tuesday, November 16, GBP/USD continued the correction on the 30M time frame. However, the downward trend line is no longer valid, as the quotes broke above it. Still, it is not enough for the trend to reverse. During the European and American sessions, the pair was trading mixed. In early trades, the British pound was rising while later in the day, the US dollar took the lead. However, volatility was moderate with quotes fluctuating about 66 pips. As for macroeconomic statistics, markets saw some interesting releases. The first tick in the image below marks the moment when the UK unemployment and wages growth reports were published. These reports showed better-than-expected data which pushed the pound sterling higher. However, it failed to maintain the bullish bias. In the afternoon trades, the American dollar got boosted by the upbeat reports on industrial production and retail sales in the United States. These publications are marked with the second and third ticks in the chart.
At the moment of writing, the downward trend became invalid, though there has been neither a rebound nor a break. So, no signal has been formed. An upwards movement is more likely to continue, but for now, it remains weak. Obviously, bulls do not hurry to buy GBP/USD. In the 5M time frame, the key levels are 1.3304, 1.3363, 1.3415-1.3424, 1.3470, 1.3517. They can be used for trading on November 17. One should watch for a break or rebound from these levels. As usual, the take profit should be set 40-50 pips away from the price line. In the 5M time frame, the nearest levels can be used as targets. As soon as the quotes go 20 pips in the right direction, set a stop loss at a breakeven point. As for the upcoming statistics, the United Kingdom will unveil the CPI report for October which is going to be the key event of November 17. Experts anticipate the inflation rate to rise to 3.8% in annual terms. If the actual reading comes in lower or higher, it will surely fuel the market reaction and spark high volatility.
