Forex Trading: GBPUSD Technical Analysis – November 18, 2019
After marking bullish candles for three consecutive days, Great Britain Pound inched lower on Monday morning with a price tag of less than 1.2918. The decrease in the price occurs amid unfavorable economic release. Talking about the technical bias, it may remain bearish since a lower low during the last downside move may be seen on the graph attached.
As of this writing, the GBPUSD is being traded around 1.2918. Following a bearish pattern, it is likely to face resistance around 1.2962, the trend line resistance ahead of 1.3100, the psychological number. Both of these levels may act as strong resistance forcing the price to stay below the said levels. Another resistance may also prevent the price from moving upside, it stands around 1.3381, the high of March 13, 2019, as shown in the graph below.
Moving towards the downside, multiple support levels can be seen including the key horizontal level which may come across the price around 1.2669, the trend line support which stands around 1.2433, and the Fibonacci level which may support the price around 1.2294 helping the price to stay above the said levels. The last one is usually called as the 23.6% Fib level support. The technical bias may remain bearish until 1.2962, the trend line resistance level remains in place.
GBP BoE Asset Purchase Facility Release
From a fundamental standpoint, In the United Kingdom, the figure for asset purchase facility remains unchanged. It is recorded as 435 B this month, the same as it was during the month before, meeting the consensus of economic activists. This facility is basically the worth of money that the Bank of England plans to create and inject into the economy through open market bond purchases as a way to influence long-term interest rates. This mechanism is also known as Quantitative Easing.
Keeping in view the price behavior of the pair over the past couple of days, opening a short term position for GBPUSD may not work well. However, if you are trading through a platform of our recommended brokers you may crack an advantage of competitive spreads.