Chart of The Day GBPUSD
GBPUSD Potential Reversal Zone & Probable Price Path
GBP: The outlook for a Brexit deal remains highly optimistic. This overall optimism in conjunction with ongoing broad based US Dollar weakness into month end, have continued to fuel demand for the Pound. Ahead today, EU chief negotiator Barnier will meet with EU fisheries ministers, and also update EU diplomats on the state of Brexit negotiations. There's still some uncertainty about whether face-to-face Brexit trade talks will deliver meaningful progress this weekend. UK nationwide house prices are the only notable standout on the calendar. Otherwise, trading conditions will be thin on account of the US Thanksgiving holiday break.
USD: During the Thanksgiving holiday in the United States, the financial market was closed and the foreign exchange market trading decreased. The US Dollar Index fell first and then stabilized. It fell nearly 0.2% to 91.85 at most, hitting a new low in nearly three months, then rebounded and closed unchanged at 92. The U.S. 10-year Treasury bill yield rate fell by nearly 4 basis points to 0.84% after the market resumed this morning. AstraZeneca’s chief executive said that a new round of global testing of the vaccine may be conducted to assess whether the vaccine’s effectiveness has reached more than 90% in response to external doubts about the vaccine. More than 180,000 new confirmed cases in the United States, more than 100,000 infections were recorded for 22 consecutive days, and the cumulative number of confirmed cases exceeded 12.8 million. The average death toll in the seven days rose to 1,600, the highest since mid-May , Among which New York State’s new confirmed cases hit the most in seven months, and the number of hospitalizations rose to the most since June
From a technical and trading perspective, GBPUSD looks priced for perfection as we approach prior cycle highs, Brexit optimism abounds and the market starts to have a distinctly buy the rumour sell the fact set up developing. Caution is counselled on retaining GBP exposure over the weekend as Brexit negotiations intensify, which means that their is GAP risk into the Asian open on Sunday, if negotiations over the weekend produce some sort of deal expect an initial spike to test the 1.3480 highs probably stops to be taken above 1.35 however it is certainly worth watching price action into the London open as any sharp reversals can offer decent shorting opportunities for a washout move to shake out weak hands setting up a retest of ascending trendline support to 1.31 before bulls may step back in. If the weekend produces no meaningful progress expect the 1.31 test to develop from the open on Sunday, watch for how price responds at the 1.31 level as a potential opportunity to deploy bullish exposure.
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