Advertisement
Advertisement
trade360
BREAKING NEWS : Start Trading Today Join Now!
Advertisement fbs

GBP/USD analysis: recovering on dollar's sell-off, but beware of Brexit headlines

Written Valeria Bednarik | 2017-11-14 13:39:03 GMT

The GBP/USD pair recovered ground this Tuesday, reaching 1.3186 mid-US session, on the back of dollar's persistent weakness, finally closing its weekly opening gap.  The British Pound hovered between gains and losses during the European morning, as investors tried to digest UK inflation data. The Consumer Price index came in at 3.0% YoY in October, better than the 3.1% expected. Inflation at factory gates rose 2.8% on the year to October, down from 3.3% in September. The readings are somehow encouraging, as the inflation escalation post-Brexit seems to have peaked, although at the same time, means that the BOE won't need to raise rates at a faster pace. This Wednesday, the UK will publish its latest employment figures, with focus on wages' growth, as salaries have been lagging well-beyond inflation. Better-than-expected wages will bright some further relief to Pound bulls. The risk, however, is still Brexit, and headlines regarding the ongoing negotiations. From a technical point of view, the 4 hours chart shows that the price has broken above the 50% retracement of the latest daily decline and  hovers Monday's high, while the RSI  indicator accelerated north, now around 58, all of which favors a new leg higher, despite the Momentum holds flat around its 100 level.  

 Support levels: 1.3130 1.3095 1.3060

Resistance levels: 1.3185 1.3220 1.3260

View Live Chart for the GBP/USD

 

Advertisement
2017 Trader of the Year is back! Don't miss the opportunity to win more than $12.000 in prizes!

Author

Valeria Bednarik
XM

Featured Forex Brokers

Broker Profile Open Account
XM
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:888
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FSP ,FCA
  • XM
    tickmill
  • Minimum Deposit: 25 USD
  • Leverage of up to 1:500
  • Broker Type : ECN/STP & STP
  • Regulation : FSA SD008
  • tickmill
    markets
  • Minimum Deposit: 100 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC
  • markets

    Contact us
    Email: reviewbrokers.net@gmail.com
    Skype:fxvnpro