empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

02.11.202109:28 Forex Analysis & Reviews: Hot forecast for GBP/USD on 11/02/2021

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

After witnessing a rather impressive decline that happened on Friday, the pound was clearly asking for a pullback. However, the pound continued to decline instead. Although it would be more correct to call it inertial motion. Or even a hint of it. Since the scale of the weakening of the pound was purely symbolic. However, a rebound did not occur. And since this did not happen yesterday, then it is not worth waiting for it today. The market is now frozen in anticipation of tomorrow's meeting of the Federal Open Market Committee. Moreover, there is still no clarity about the timing of the beginning of the curtailment of the quantitative easing program. And in such a situation, no one intends to risk it. So the market will stagnate.

The British currency, after Friday's decline by more than 110 points, has entered the stage of stagnation. At the same time, the downward interest, unlike the euro, remains on the market. This signals that the phase of gradual weakening of the pound is still relevant among traders.

The RSI technical instrument in the four-hour periods approached the oversold zone, but did not cross the 30 line from top to bottom. This may indicate a predominant interest in short positions.

The daily chart shows a corrective move from the support level of 1.3400, where a change in trading interests occurred in the resistance area of 1.3800/1.3830.

Expectations and prospects:

In this situation, there is a slight stagnation along the 1.3650 value. This can lead to a process of accumulation of trading forces, which will have a positive effect on the volume of short positions.

The next step on the bears' path is within the level of 1.3600.

In the future, a full restoration of the dollar position relative to the corrective move is considered.

Comprehensive indicator analysis gives a sell signal based on short-term and intraday periods due to the inertial downward trend.

Exchange Rates 02.11.2021 analysis

Dean Leo
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off