GBPUSD, H4
Yesterday (October 6) this pair failed to pass the 1.3000 level, which was a multi-week high zone. It was followed by a 100-pips slump in part as a result of a tweet by US President Trump asking his team to stop negotiating with the Democrats on measures to help and stimulate the economy until the election is finished. That will have to be looked at again after Trump or Biden win the election.
As of yesterday, Fed Chair Powell said the global inflation pressure remained low. The negative interest rate measure is not a tool the Fed will use because the results of it are not clear. As for the Brexit negotiations, these will continue today and into next week until October 15 and the EU summit.
From a technical point of view, on the H4, time frame, it can be seen that yesterday the pair tested 1.3000, which is the same area as the MA200, before falling and fluctuating during the European market, before falling heavily from the appreciation of the US Dollar. Before coming to a break at the MA50 and the heavy slump seen yesterday, it may confirm a bearish rising wedge that has been forming since September. So today if the pair could break the MA50 line down, it could go deeper to the next major support at 1.2800. On the other hand, if we could rise above 1.2900, we might see this pair test 1.3000 again.
Click here to view the economic calendar or free webinar.
Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
Warning: This material was prepared for general marketing communication. To provide information only And is not considered independent investment research No part of this communication contains Or should be considered to contain Investment advice Or soliciting investment Or soliciting for the purpose of buying or selling any financial instrument. All information is gathered from reputable sources. And all the information includes indicators of past performance It is not a guarantee or a reliable indicator of future performance. Users should be aware that any investment There is a degree of uncertainty in leveraged products. And this type of investment involves a high level of risk. Which the user is solely responsible for We are not responsible for any loss. Resulting from investments using the information generated by this communication This communication must not be reproduced or redistributed. Without our written permission
