The forex traders remain to focus on the GBP for the week ahead. The pound delivered 2.70% return in the week ended October 18, was backed by the Brexit deal hopes. Over the past seven weeks, relentless GBP buying and short-covering push the price above all daily moving averages, which hasn’t seen since mid-2018.
The cable rose 850+ points or 8.30% to nearly 1.30.
“Prime Minister Boris Johnson vowed he’d never, ever ask the European Union to push the Brexit deadline beyond October” Washington Post reported.
Technically speaking, 1.3000 will act as immediate resistance for the cable. A decisive break above could take the GBPUSD to 1.3200 and 1.3380 key resistance level. On the downside, 1.2830 and 1.2700 will be the key support levels in Asia session today.
EURGBP: The cross is now trading tad above key support level provided by 50MA (Monthly)whereas lost 200MA (Weekly). Now focus on to 0.8530, followed by 0.8470 suggested by the A-B-C corrective wave structure.
The resistances seem to be at 0.8660 and 0.8720. The daily indicators are oversold RSI at 28, expect a bullish crossover on Oscillator in a day or two.
If the cross is moving higher, watch out for 0.8780. This view would be invalid if the price lost the support of 0.8470.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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