19.10.201817:11 Forex Analysis & Reviews: Forecast of GBP / USD for October 19, 2018

GBP / USD

Another page in the sad story about Brexit was turned over yesterday by politicians in Europe and England. It was said in it that the extraordinary November EU summit on this issue was canceled due to the lack of progress in the negotiations. Prime Minister Theresa May has officially recognized the postponement of the final date of the country's withdrawal from the EU a few months later. Against this background, the decline in retail sales in England by -0.8% in September against the forecast of -0.4% looked particularly pessimistic. The pound sterling lost 98 points in a day. According to unstable signs, the price on a daily scale stuck below the indicator line of balance, the fall stopped at the nearest support of 1.3015 (the region of the minimum of October 2017). Fixation below the level will open the downside target of 1.2920, at least October of the current year. This level also coincides with the support of the Kruzenshtern line on a daily scale.

There are no reversal patterns warning of a correction on the four-hour chart, but double convergence of the price with the Marlin oscillator is formed in the hour time, which indicates a possible correction, especially on Friday, when investors can take profits.

In the United States today, data on home sales in the secondary market for September are published, the forecast is 5.29 million compared to 5.34 million in August, which may serve as a reason for a moderate correction.