Opinion: Gold will still show itself

analytics5bd863bf22f80.jpg

According to analysts of the American investment company State Street Global Advisors, at present, the gold market shows only signs of recovery, therefore it is still premature to talk about the full-fledged rise in prices for precious metals.

"Recently, the period in which the demand for gold, as a rule, is low, has ended. However, ahead of us waiting for the Indian festival season. And then in the foreseeable future, China will celebrate the New Year according to the lunar calendar. We expect that in the next 8-9 months, the demand for gold will be as high as possible," the firm's representatives said.

"Some investors reduce their investments in the US dollar and transfer their capital into gold. This trend has persisted over the past few months. The correction in the stock market also contributes to the strengthening of the value of precious metals," they added.

"We hope that on the way to the price of $ 1,350 for 1 ounce, gold will not meet big obstacles. In the past five years, the level of $ 1,150 per ounce has established itself as a reliable foundation. It is assumed that in the next 6-12 months, we will be able to observe the overcoming of the next resistance point," the experts noted.

The material has been provided by InstaForex Company - www.instaforex.com

Eurozone GDP in the third quarter showed minimal growth in 4 years

analytics5bd860604379b.jpg

According to the European statistical agency Eurostat, eurozone GDP growth in the third quarter of 2018 unexpectedly slowed to a minimum over the last 4 years. Economic growth was 0.2% in quarterly terms and 1.7% in annual terms. Experts predicted GDP growth of 0.4% and 1.9%, respectively.

Indicators for the II quarter were recorded at around 0.4% in quarterly terms and at a level of 2.2% in annual terms.

The economy of all 28 countries of the European Union in the third quarter grew by 0.3% compared with the second quarter and by 1.9% in annual terms.

The material has been provided by InstaForex Company - www.instaforex.com

Investors bet on Democrats, which means the dollar will collapse

analytics5bd85e204bc74.jpg

The Democratic Party is associated with investors with a cheaper dollar, low bond yields, and a weak equity market. Therefore, with the Democrats winning the November 6 midterm elections, the dollar is likely to go down. In addition, the stronger the gap with the Republicans, the brighter these factors will manifest themselves.

According to market participants, the Democratic Party will receive a majority in the House of Representatives. This is evidenced by the results of the Standard Chartered poll, which was attended by investors from the United States (40%), Asia (30%), Europe (20%). The rest from other regions of the world. Respondents point to a small chance of victory for the Republicans, while the Democrats, according to their assumptions, are much more likely to leave behind their competitors.

The October 26 StanChart report also says that if members of the Democratic Party gain control in the House of Representatives, the Chinese yuan will strengthen its position. In this case, the victory of the Republicans foreshadows the growth of stocks, higher bond yields, and an expensive dollar.

i3izYfjNnUAw9TfVMnskb3rQtnd1A2t-TLSP1l-v

On Tuesday, the US currency shows growth due to the demand for safe-haven assets due to differences in the US and China. Traders have begun to actively buy dollars after Bloomberg reports that by early December, Washington may impose duties on all remaining imports from the PRC. This will happen if negotiations between heads of state, Donald Trump and Xi Jinping, at the end of November, do not lead to the desired result, the weakening of the trade war.

The yuan is trading at around 10-year lows, falling 0.1% against the dollar, to 6.9696.

The dollar index is at its highest since the beginning of the year.

PKhom8SI6SRzyyst8wuTEnfe1Hk8sFfPefKQSt8P

The material has been provided by InstaForex Company - www.instaforex.com

Experts have identified the prospects of the Canadian dollar

analytics5bd84cea85143.jpg

According to analysts of the Dutch ING Bank, last week, the mood of the Bank of Canada at the end of the next meeting turned out to be more "hawkish" than previously expected.

"However, if the positive news in the field of monetary policy has already been taken into account in the Canadian currency, the more important events for it were the decline in oil prices and the global risk aversion. Therefore, it is not surprising that now the USD / CAD pair is trading above the level of 1.30," representatives of the financial institute said.

As for the current week, according to experts, special attention should be paid here to the data of Canada's GDP for August, which will be released on Wednesday. In addition, a report on the country's labor market for October will be published on Friday.

"We expect that the rate of economic growth will remain unchanged both in annual and monthly terms, that is, at 2.4% and 0.2%, respectively, which can apparently be considered optimistic news, as Canada continues to extract benefited from strong external demand. It is assumed that unemployment will also remain at the same level - 5.9%," the specialists of ING Bank said.

"Strong statistical data will contribute to the formation of a "ceiling" for USD / CAD, which will leave the pair below 1.32. Any break above this mark should be accompanied by a significant improvement in the state of the US economy relative to Canada's GDP," they added.

The material has been provided by InstaForex Company - www.instaforex.com

EUR / USD: plan for the US session on October 30. Eurozone GDP data upset traders

To open long positions on EUR / USD, you need:

Buyers gave up the morning standoff, which I talked about in detail here. Weak data on the growth of the eurozone economy, released in the morning, put pressure on the euro. At the moment, it is possible to count on long positions in euros after returning and fixing above the resistance level of 1.1365, which will lead to a larger increase in EUR / USD in the area of 1.1395, where I recommend fixing the profits. There is also hope for the level of 1.1337, but there it's best to open long positions after the formation of a false breakdown. The breakthrough of the level of 1.1337 and a further fall will be able to stop only the lows of 1.1300 and 1.1251, from where the euro can be bought immediately for a rebound.

To open short positions on EUR / USD, you need:

The sellers coped with the morning task, and as long as the trade is conducted below the resistance of 1.1365, the pressure on the euro will continue. The main task for the second half of the day is the test and breakdown of the support level of 1.1337, which will lead to the formation of a larger downward wave with access to monthly minimums of 1.1300 and 1.1251, where I recommend fixing the profits. In the case of a return to the resistance level of 1.1365 in the second half of the day, it is best to consider short positions when updating the daily maximum near 1.1395.

Indicator signals:

Moving Averages

Trade has moved below the 30- and 50-day average, indicating a further decline in the euro.

Bollinger bands

The volatility of the Bollinger Bands indicator is rather low, however, a breakthrough of the lower border around 1.1345 could lead to a further sale of the euro.

analytics5bd844b578460.png

Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com

Intraday technical levels and trading recommendations for GBP/USD for October 30, 2018

analytics5bd8519c3371c.png

On September 13, the depicted daily downtrend line which came to meet the pair around 1.3025-1.3090 failed to offer enough bearish pressure on the pair. Since then, the GBP/USD pair has been demonstrating a successful bullish breakout so far.

On September 21, the GBP/USD failed to demonstrate sufficient bullish momentum above 1.3296. The short-term outlook turned to become bearish within the depicted H4 bearish channel to test the backside of the broken uptrend.

Bearish persistence below the price level of 1.2970 (50% Fibo level) enhanced further bearish decline towards 1.2790 where the lower limit of the movement channel and 79.8% Fibonacci Level are located.

On H4 chart, the GBP/USD pair looks oversold around the current price levels (1.2700). BUY entries are preferred at the current situation (the lower limit of the depicted H4 channel).

As for the bullish breakout scenario to remain valid, bullish persistence above 1.2790 and an early breakout above 1.3000 (50% Fibo level) are mandatory to maintain sufficient bullish momentum towards 1.3200.

On the other hand, the current bearish persistence below 1.2790 allows further bearish decline towards 1.2695 and 1.2660.

The material has been provided by InstaForex Company - www.instaforex.com

Intraday technical levels and trading recommendations for EUR/USD for October 30, 2018

analytics5bd8503ec2200.png

On the weekly chart, the EUR/USD pair is demonstrating a high-probability Head and Shoulders reversal pattern where the right shoulder is currently in progress.

On September 10, the price level of 1.1500 offered temporary bullish recovery. Quick bullish movement was demonstrated towards the upper limit of the price range (1.1750). However, the EUR/USD bulls failed to pursue towards higher bullish targets.

On October 10, Recent bearish decline below 1.1520 found its way towards the price level of 1.1420.

However, Temporary bullish recovery around 1.1430 pushed the EUR/USD pair above 1.1520 until bearish breakdown of 1.1520 occurred again on October 17.

Hence, a descending high was established around 1.1600 enhancing the bearish side of the market.

As for the bearish side of the market to remain dominant, the EUR/USD pair should pursue trading below the price level of 1.1400.

The current bearish breakout has initial targets around 1.1275 and probably 1.1100 if sufficient bearish pressure is demonstrated.

The material has been provided by InstaForex Company - www.instaforex.com

Bitcoin analysis for October 30, 2018

analytics5bd83a522024c.png

Trading recommendations:

According to the Daily time - frame, I found that BTC finally managed to get out of the 12-day balance and confirmed a further downward movement. Yesterday's close was very confident and it suggests strong selling pressure on the market. My advice is to watch for selling opportunities. The downward target is set at the price of $6.030.

Support/Resistance

$6.030 – Objective target

With InstaForex you can earn on cryptocurrency's movements right now. Just open a deal in your MetaTrader4.

The material has been provided by InstaForex Company - www.instaforex.com

Analysis of Gold for October 30, 2018

analytics5bd838554e339.png

Recently, Gold has been trading downwards. As I expected, the price tested the level of $1,219.15. According to the Daily time – frame, I have found weakness in the background and a broken support trendline, which is a sign that sellers are in control. I have also found a hidden bearish divergence on the RSI oscillator, which is another sign of weakness. My advice is to watch for selling opportunities. The downward take profit levels are set at the price of $1,215.60 and at the price of $1,207.95.

The material has been provided by InstaForex Company - www.instaforex.com

GBP/USD analysis for October 30, 2018

analytics5bd836674a63c.png

Recently, the GBP/USD pair has been trading downwards. The price tested the level of 1.2754. According to the Daily time – frame, I found the bearish breakout of the 2-day balance, which is a sign that sellers are in control. The short – term trend is bearish and my advice is to go with direction of the trend. A downward take profit level is set at the price of 1.2660 (key short-term support).

The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of NZD/USD for October 30, 2018

analytics5bd831f12c3cd.png

Overview:

The NZD/USD pair fell from the level of 0.6542 towards 0.6503. Now, the price is set at 0.6539. On the H1 chart, the resistance of USD/CHF pair is seen at the level of 0.6542 and 0.6574. It should be noted that volatility is very high for that the NZD/USD pair is still moving between 0.6542 and 0.6478 in coming hours. Moreover, the price spot of 0.6542 remains a significant resistance zone. Therefore, there is a possibility that the NZD/USD pair will move downside and the structure of a fall does not look corrective. In order to indicate the bearish opportunity below 0.6542, sell below 0.6542 with the first target at 0.6503 in order to test yesterday's bottom. Additionally, if the NZD/USD pair is able to break out the bottom at 0.6503, the market will decline further to 0.6478 in order to test the weekly support 2. Also, it should be noticed that support 3 is seen at the level of 0.6439 which coincides the double bottom at the same time frame.

The material has been provided by InstaForex Company - www.instaforex.com

US companies are preparing to move production outside of China

analytics5bd821dc984cd.jpg

More than 70 percent of American manufacturers operating in the south of China is rolling out plans for further investment and are preparing for a partial or full transfer of production to other countries since the trade war has already significantly reduced profits.

American companies operating in China are confident that they suffer more from a trade dispute than firms from other countries, according to a survey by the American Chamber of Commerce. 64 percent of companies said they are considering moving production lines outside of China, but only 1 percent plan to create production bases in North America.

The study found that the trade war has already disrupted the supply chain in Southeast Asia. US companies reported growing competition from Vietnamese, German, and Japanese businesses, while Chinese companies said they were facing increased competition from Viet Nam, India, the United States, and South Korea. Customers postpone orders or do not place them at all, and it will last until certainty appears. However, during this time, buyers can go to competitors who are willing to offer cheaper products, even to the detriment of themselves, but in order to capture market share.

Almost half of the companies surveyed also stated that there is an increase in non-tariff barriers, including increased bureaucratic supervision and slower customs clearance. Analysts warn of such a risk.

JZ9VjuEZXqVInq3rLPBXZRHknoFELizugIO1p6BF

The material has been provided by InstaForex Company - www.instaforex.com

The United States is preparing to become the world's largest energy supplier

analytics5bd81dbd6277a.jpg

The United States will become a key supplier of energy resources to meet growing demand worldwide, and technology and financing innovations will be geared towards increasing US oil and gas production in the next decade, the country's chief energy engineer said.

"In the next 5-10 years, we expect improvements in recovery and even doubling in some of our most prolific (gas) basins. In the short term, this means that the United States will be able to double production, double its export capacity and introduce market innovation," said Frank Fannon, Assistant Secretary of the Energy Bureau of the US Department of State.

Fatih Birol, executive director of the International Energy Agency (IEA), also confirmed that the United States will become the "undisputed leader" of global oil and gas production. Since the beginning of this year, oil production in the United States reached a new record level and reached 11 million barrels a day, putting the United States on a par with Russia.

In many respects, thanks to the growth in US production, the oil volumes of the three largest world producers reached 33 million barrels per day in September, according to Refinitiv Eikon. This increase of 10 million barrels per day since the beginning of the decade means that only these three producers can now meet a third of global oil demand.

With regard to gas, the IEA said that the United States, along with Australia and Qatar, by 2023 will supply 60 percent of the global liquefied natural gas. Currently, there are only two LNG export projects in the United States, with a few more awaiting financial approval.

K951MZVE3Y1Gl_7IWkv32V8vuo2etUQ3L4o6IVFs

The material has been provided by InstaForex Company - www.instaforex.com

Oil supplies from OPEC countries fell to last year's low

analytics5bd81533a459d.jpg

According to the calculations of the analytical agency Bernstein, oil exports from OPEC in the current month decreased by 0.8 million barrels per day, to 24.8 million barrels. This is the lowest since April 2017, experts emphasize. The lion's share of cuts in oil supplies came from Iran, but it also touched Venezuela and Libya.

According to Bernstein, the export of black gold from Iran fell by 1 million barrels per day. Experts do not exclude an additional reduction of another 1 million. The situation will depend on the actions of India and China. Analysts find it difficult to answer whether these countries will follow the US sanctions against Iran's oil sector.

Currently, the volume of oil exports from Iran fell to a minimum since March 2016, reaching 1.7 million barrels per day. The agency notes that the Celestial Empire, previously reduced purchases of Iranian oil, is now increasing them again. The volume of purchases of black gold by the authorities of China reached 0.8 million barrels per day, noted in Bernstein.

Recall that the United States, withdrawing from an agreement on a nuclear program with Iran, resumed sanctions against this country. Since the beginning of August this year, the United States imposed a number of restrictions against Iran. The next tranche of sanctions, affecting the export of black gold, is expected in early November. The White House intends to bring oil exports from Iran to zero. The Donald Trump administration has called on Iranian oil buyers to abandon it.

The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for October 30, 2018

analytics5bd82e583f873.png

Overview:

The EUR/USD pair continues to move downwards from the areas of 1.1475 and 1.1422. Last week, the pair dropped from the level of 1.1475 to 1.1356. Today, resistance is seen at the levels of 1.1422 and 1.1475. So, we expect the price to set below the strong resistance at the levels of 1.1475 and 1.1422; because the price is in a bearish channel now. Also, it should be noted that the price of 1.1457 is coincided with a ratio of 38.2% Fibonacci on the H4 chart. Amid the previous events, the price is still moving between the levels of 1.1422 and 1.1300. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.1422. Furthermore, if the EUR/USD pair is able to break out the bottom at 1.1356, the market will decline further to 1.1295. On the other hand, if the price closes above the strong resistance of 1.1475, the best location for a stop loss order is seen above 1.1475.

The material has been provided by InstaForex Company - www.instaforex.com

Wave analysis of GBP / USD for October 30. The British pound continues to free fall.

analytics5bd80a1761cd5.png

Wave counting analysis:

During the October 29 trading session, the GBP / USD currency pair lost about 30 basis points and continues to decline today. Thus, the minimum of the wave c can be broken through in the coming hours, which, in turn, will lead to the complication of this wave. The unsuccessful attempt to break through the level of 127.2% Fibonacci indirectly indicates the pair's readiness for further decline. The goal is the level of 161.8% Fibonacci. Given the lack of a positive news background for the British currency, the wave c can take a much longer view than it has now.

The objectives for the option with purchases:

1.3258 - 0.0% of Fibonacci (formal goal)

1.3300 - 161.8% of Fibonacci (formal goal)

The objectives for the option with sales:

1.2718 - 161.8% of Fibonacci

1.2638 - 261.8% of Fibonacci (senior grid)

General conclusions and trading recommendations:

The currency pair GBP / USD keeps the downward mood. As before, the new sales of the pair are now quite risky, despite the fact that the news background remains in favor of the dollar, and the wave c can take a long look with targets located near the marks of 1.2718 and 1.2638. Already open sales can now be left open, for example, until an unsuccessful attempt to break through one of the target marks.

The material has been provided by InstaForex Company - www.instaforex.com

Wave analysis of EUR / USD for October 30. Corrective waste within wave 4 is possible.

analytics5bd809e837321.png

Wave counting analysis:

In the course of trading on Monday, the EUR / USD currency pair lost about 30 basis points, however, it remains allegedly as part of building wave 4, c. If this is true, then the pair will resume raising with targets located near the 100.0% of Fibonacci level, or slightly higher. After that, the decline will resume within wave 5, c. The news background now suggests the continuation of the construction of the downward trend. The GDP report, which will be released today in the EU, may return the pair to the construction of a downward wave.

The objectives for the option with sales:

1.1327 - 127.2% of Fibonacci

1.1194 - 161.8% of Fibonacci

The objectives for the option with purchases:

1.1522 - 76.4% of Fibonacci

1.1432 - 100.0% of Fibonacci

General conclusions and trading recommendations:

The currency pair is supposed to continue building wave 4, c. Thus, now I recommend not to open new sales, but to wait for the completion of this wave. Since the wave counting involves the construction of at least one more descending wave, sales remain the working variant for the pair, with targets located near the calculated elevations of 1.1327 and 1.1194, which equates to 127.2% and 161.8% according to Fibonacci.

The material has been provided by InstaForex Company - www.instaforex.com

GBP / USD. October 30. The trading system. "Regression Channels". British pound can sag even more

4-hour timeframe

analytics5bd801c0b9792.png

Technical details:

The senior linear regression channel: direction - up.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -74.7572

The currency pair GBP / USD on the first trading day of the week could not show a more or less tangible correction. The minimum share of traders recorded part of the short positions, which led to the weakest upward correction. After that, the downward movement resumed and the pair overcame Murray's level of 2/8. Thus, from a technical point of view, the downward movement is likely to continue today. Important macroeconomic information is not expected from the UK today, but new data from the Parliament or on the subject of Brexit may unexpectedly come in. It is impossible to predict the performance of this or that politician, thus, it will be necessary to respond to possible events of this kind promptly. If no new information is received, then traders will rely when making trading decisions solely on technology. A technical picture remains unambiguous. A downward trend and the indicator Heikin Ashi, signaling a local downward movement. No interesting information is expected from America today either, so the fundamental influence on the pair's movement will be absent today.

Nearest support levels:

S1 - 1,2756

S2 - 1.2695

S3 - 1.2634

Nearest resistance levels:

R1 - 1.2817

R2 - 1.2878

R3 - 1.2939

Trading recommendations:

The currency pair GBP / USD continues its downward movement. Thus, short positions with a view to 1.2756 are relevant now. A reversal of the indicator Heikin Ashi up will serve as a signal to reduce the short positions, as it will mark the beginning of an upward correction.

Long positions will become relevant after overcoming the moving average by traders, which is not expected in the near future. Nevertheless, in this case, the trend in the instrument will change to ascending, and the first goal will be 1.2939.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The senior linear regression channel is the blue lines of the unidirectional movement.

The junior linear channel is the purple lines of the unidirectional movement.

CCI is the blue line in the indicator regression window.

The moving average (20; smoothed) is the blue line on the price chart.

Murray levels - multi-colored horizontal stripes.

Heikin Ashi is an indicator that colors bars in blue or purple.

The material has been provided by InstaForex Company - www.instaforex.com

The EUR / USD instrument on Tuesday, October 30, after a rebound from Murray's level of 3/8, has resumed a slight downward

4-hour timeframe

analytics5bd801752fa59.png

Technical details:

The senior linear regression channel: direction - sideways.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -61.8523

The EUR / USD instrument on Tuesday, October 30, after a rebound from Murray's level of 3/8, has so far resumed a slight downward movement. In general, the pair could not even work out a moving average line as part of the upward correction. Thus, the demand for Eurocurrency remains almost zero, and at the moment, there are no fundamental reasons for traders to change their mood. Today in the European Union, a preliminary value of GDP for the third quarter will be published. Since this is only a preliminary value, then a strong market reaction is not to be expected. Nevertheless, given the general predisposition of traders to buy the dollar, the low value of this report may cause additional pressure on the euro currency. According to experts, the value of GDP in the third quarter will drop to 1.8%. If in reality there is a lower growth rate, then the pair may continue the downward trend. But the higher than the forecast value is unlikely to cause any reaction of traders. In the States, no macroeconomic publications are planned for today. Donald Trump continues to remain silent, and it seems that the leader of the United States is preparing some kind of another "bomb." Trump is hardly satisfied with the next dollar growth, which is why he has even openly criticized the Fed and Jerome Powell, as he believes that one of the reasons for the strengthening of the American currency lies precisely in too rapid monetary tightening.

Nearest support levels:

S1 - 1.1353

S2 - 1,1292

S3 - 1.1230

Nearest resistance levels:

R1 - 1,1414

R2 - 1.1475

R3 - 1.1536

Trading recommendations:

The EUR / USD currency pair has completed the correction. Thus, it is now recommended to trade short with the first goal of 1.1353, and in the case of overcoming this target, with the goal of Murray level "1/8" - 1.1292.

Buy-positions can be considered no earlier than fixing the price above the moving with the target of 1.1475. However, this pair will require fundamental reasons that are not currently foreseen.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The senior linear regression channel is the blue lines of the unidirectional movement.

The junior linear regression channel is the purple lines of the unidirectional movement.

CCI - blue line in the indicator window.

The moving average (20; smoothed) is the blue line on the price chart.

Murray levels - multi-colored horizontal stripes.

Heikin Ashi is an indicator that colors bars in blue or purple.

The material has been provided by InstaForex Company - www.instaforex.com

Trading Plan for 10/30/2018

Yesterday, the market was relatively calm, and a slight strengthening of the dollar can be considered rather inertial. Although Europe continues the confusion about the Italian budget deficit, which has a negative impact on the single European currency. The fact is that the Italian government rejects the requirements of Brussels to amend the draft budget and does not intend to reduce its deficit to the level required by the rules of the European Union. So the conflict between Brussels and Rome continues, which will constantly irritate market participants, as it threatens with the growth of a full-fledged debt crisis in Europe. At the same time, the British data on the lending market also does not add optimism, since with an increase in consumer lending from 4.3 billion pounds to 4.7 billion pounds, the number of approved mortgage applications decreased from 66,101 to 65,269. Seeing this, it is strange that the dollar did not strengthen even more, but the American statistics itself prevented it. Of course, as expected, personal spending rose by 0.4%, which indicates an increase in consumer activity. However, personal incomes increased by only 0.2%, and such a strong gap with the growth rate of expenses rather indicates that even if inflation grows, it will not be sustainable.

Today, you can pay attention only to the preliminary data on the GDP of the euro area for the third quarter. The economic growth rate is expected to slow down from 2.1% to 1.8%, and such a noticeable cooling of the European economy in anticipation of Mario Draghi's promised collapse of the quantitative easing program is increasingly convincing that the head of the European Central Bank will change his mind once again. However, as yesterday, the potential for strengthening the dollar is not so great, since, according to S&P / Case-Shiller, the growth rate of housing prices in the United States may slow down from 5.9% to 5.8%. Do not forget about the apparent overbought of the dollar.

The euro / dollar currency pair after the Friday pullback again tries to restore the downward movement, gradually going down to the value of 1.1360. It is likely to assume that the bearish mood will continue, wherein the case of fixation lower than 1.1360, it will return us to the local minimum of 1.1334.

WcezbKAN2fHY-SVlR0XLsJCFONZ-4_nOlC_WQXD2

The currency pair Pound / Dollar rolled back for a while, but the downward interest prevails, as a result, returning the quotation to the level of 1.2770. It is likely to assume a wagging within the level of 1.2770, where it is worth tracking a clear fixation lower than 1.2760.

0LyLc2jUTylw0vz4Jzef4oEZ7JhEaRW9OGc7AmAR

The material has been provided by InstaForex Company - www.instaforex.com

GBP / USD: plan for the European session on October 30. Bulls do not cope with the pressure of bears

To open long positions on GBP / USD, you need:

Pound buyers made several unsuccessful attempts, but the market is gradually moving towards the sellers. The first signal to open long positions will be the formation of a false breakdown and a return to the support level of 1.2776, which will lead to an upward correction in the area of 1.2839, where I recommend fixing the profits. The main task of the buyers will be the breakthrough and consolidation above the resistance of 1.2839, from which the maximum of 1.2905 and 1.2947 open. In the event of a decline in GBP / USD under the support level of 1.2776, it is best to return to long positions after updating the lows of 1.2733 and 1.2697.

To open short positions on GBP / USD, you need:

Breaking the lower boundary of the upward correctional channel (on the green chart) or fixing below the support level of 1.2776 could return the big sellers of the pound to the market, which will lead to the continuation of the downward trend with the update of the new monthly lows of 1.2733 and 1.2697, where I recommend fixing the profit. An unsuccessful attempt to consolidate above the resistance level of 1.2839 will also be a signal to open short positions in a pound. Otherwise, you can sell GBP / USD at a rebound from the maximum of 1.2905.

Indicator signals:

Moving Averages

Trade returned under the 30- and 50-day average, which indicates a possible return to the market of large buyers.

Bollinger bands

There are no signals to enter the market on the Bollinger Bands indicator due to low volatility.

xSHz6XYy3ACQSFaltO0dQKCO2f9IDhmyX66uE2Wd

Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com

Indicator analysis. Daily review for the currency pair GBP / USD on October 30, 2018

Trend analysis (Fig. 1).

On Tuesday, the price will move down with the first goal of 1.2745, the support line (red thick line).

Pb1d7MgdQZGGlMP_QoD3BzauRAVclbIkWZXxOKFL

Fig. 1 (daily schedule).

Comprehensive analysis:

- Indicator analysis - down;

- Fibonacci levels - neutral;

- Volumes - down;

- Candlestick analysis - down;

- Trend analysis - down;

- Bollinger lines - down;

- Weekly chart - down.

General conclusion:

On Tuesday, the price will move down with the first goal of 1.2745, the support line (red thick line). At 15:00 London time, there is strong news.

The material has been provided by InstaForex Company - www.instaforex.com

Indicator analysis. Daily review for the currency pair EUR / USD on October 30, 2018

Trend analysis (Fig. 1).

On Tuesday, the downward trend is expected to continue with the first goal. The lower fractal of 1.1337 and a further down to the support line of 1.1270 (thick orange line).

1KOLMywwABxczAcgOxKlm_NdurVMYXaQHkcL6s7q

Fig. 1 (daily schedule).

Comprehensive analysis:

- Indicator analysis - down;

- Fibonacci levels - neutral;

- Volumes - down;

- Candlestick analysis - up;

- Trend analysis - down;

- Bollinger lines - down;

- Weekly chart - down.

General conclusion:

On Tuesday, the market will continue moving down, with the first goal being the lower fractal of 1.1337, and a further down to the support line of 1.1270 (thick orange line).

The material has been provided by InstaForex Company - www.instaforex.com

EUR / USD: plan for the European session on October 30. Bears can regain market

To open long positions on EUR / USD, you need:

Buyers of the European currency urgently need to get above the resistance level of 1.1398, which will lead to the breakdown of the triangle formed yesterday, and to the continuation of the upward correction with the update of the highs of 1.1438 and 1.1474, where I recommend fixing the profit. The formation of a false breakdown at 1.1371 in the first half of the day can also be an impetus to the increase of long positions by large investors. Otherwise, it is best to return to EUR / USD purchases after updating the support for 1.1337 or to rebound from the new monthly minimum of 1.1300.

To open short positions on EUR / USD, you need:

Sellers need to form a false breakdown at the resistance level of 1.1398 or break through the support of 1.1371, and also to consolidate below this range, which will lead to the formation of a new downward wave in EUR / USD with a minimum of 1.1337 and 1.1300, where I recommend fixing the profits. In the case of growth above the resistance level of 1.1398 against the background of good data on GDP of Italy and the Eurozone, which are expected in the first half of the day, short positions can be returned to rebound from the levels of 1.1438 and 1.1474.

Indicator signals:

Moving Averages

Trade is conducted on the same level with the 30- and 50-day average, which indicates market uncertainty and the formation of a large movement.

Bollinger bands

There are no signals to enter the market on the Bollinger Bands indicator due to low volatility.

vjBzfCgAzgY4CwMC84xL5M6FK4AUiAw5nCbF7TO9

Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com

Analysis of the divergence of EUR / USD on October 30. The pair is ready for further fall

4h

analytics5bd7fa56055f5.png

The bearish divergence at the CCI indicator allowed the EUR / USD pair to make a turn in favor of the American currency and resume the process of falling in the direction of the correctional level of 100.0% - 1.1303. New emerging divergences are not observed in any indicator. Fixing the pair on October 30 above the Fibo level of 76.4% - 1.1422 can be interpreted as a reversal in favor of the EU currency and expect some growth in the direction of the correction level of 61.8% - 1.1497.

The Fibo grid was built on extremes from August 15, 2018, and September 24, 2018.

Daily

BArBOqacHJWHGi0AOdhtxXhyBYFc6oZQW6yJnZM-

On the 24-hour chart, the process of falling quotations continues in the direction of the correctional level of 127.2% - 1.1285. Rebounding the pair from the correction level of 127.2% will allow traders to count on a turn in favor of the European currency and some growth in the direction of the Fibo level of 100.0% - 1.1553. Closing the course of the pair below the correction level of 127.2% will increase the probability of a further fall in the direction of the next correction level of 161.8% - 1.0941.

The Fibo grid is built on extremes from November 7, 2017, and February 16, 2018.

Recommendations to traders:

You can make purchases of the EUR / USD currency pair with a target of 1.1422 and a Stop Loss order under the Fibo level of 100.0% if the pair bounces the correction level of 1.1303.

The EUR / USD currency pair can be sold now with a target of 1.1303 with a Stop Loss order above the Fibo level of 76.4%, since the pair has rebounded from the correction level of 1.1422 with the formation of a bearish divergence.

The material has been provided by InstaForex Company - www.instaforex.com

Analysis of the divergence of GBP / USD on October 30. Bearish divergence pushes the pound down again

4h

analytics5bd7fa21c1518.png

On the 4-hour chart, the GBP / USD currency pair reversed in favor of the US dollar and closed below the correction level of 76.4% - 1.2813, after the formation of a bearish divergence in the CCI indicator. As a result, on October 30, the fall in quotations can be continued in the direction of the next correction level of 100.0% - 1.2662. Fixing quotations above the Fibo level of 76.4% will work in favor of the British currency and some growth in the direction of the correction level of 61.8% - 1.2905.

The Fibo grid was built according to extremums of August 15, 2018, and September 20, 2018.

1h

jc4zHtJ_pdX-ufeTwxiYYUkNsDx66vlByMNJ25Ce

On the hourly chart, the pair rebounded from the correction level of 127.2% - 1.2833 and a turn in favor of the American dollar. Thus, today the fall in quotations may continue in the direction of the correctional level of 161.8% - 1.2718. Maturing divergences are not observed. Fixing quotations above the Fibo level of 127.2% will work in favor of the British currency and will allow us to expect some growth in the direction of the correction level of 100.0% - 1.2924.

The Fibo grid was built on extremes from October 4, 2018, and October 12, 2018.

Recommendations to traders:

Purchases of the GBP / USD currency pair can be made with a target of 1.2924 and a Stop Loss order under the correction level of 127.2% if the pair closes above 1.2833 (hourly chart).

The currency pair GBP / USD can be sold now with a target of 1.2718 and a Stop Loss order above the level of 127.2%, since the pair completed the rebound from the correction level of 1.2833 (hourly chart).

The material has been provided by InstaForex Company - www.instaforex.com

The dollar will be in demand

As a result of Monday, the US dollar received support, but according to the dynamics of its index, ICE as a whole remained in the "outset", consolidating for the third day in a row.

The behavior of the dollar can be explained by several reasons, both fundamental and situational. It still supports the process of raising the interest rates of the US Federal Reserve, as well as its withdrawal from the financial system by reducing the balance of the regulator, which contributes to the growing deficit of the dollar supply in the market.

Another major situational reason is the factor of uncertainty, which is produced by the United States in the form of a trade war between Washington and Beijing, as well as other smaller conflicts. Here, the US currency is already in demand as a safe haven asset.

There are also a number of other factors that constrain the strong strengthening of the dollar. This is D. Trump's ongoing attacks on the Fed, indicating its dissatisfaction with a strong dollar. Then political instability in the United States itself due to a split in society and rejection, approximately, by half of Trump as president. The upcoming congressional elections contain some intrigue that can both negatively and positively affect the rate of the US currency.

So far, America's economy is generally very, very positive, which contributes to the demand for dollar-denominated assets, but if the local stock market continues to decline and enters a full-fledged bearish phase, and the political struggle inside the country only intensifies, then the dollar may be under pressure, and noticeable. In previous economic and geopolitical crises, the dollar was perceived as a safe haven precisely because of stability inside the country, but times have changed. The American society is split, which frightens market players, forcing it to behave with restraint towards the dollar purchases, which is reflected in its behavior, which is expressed in the protracted process of consolidation.

While the Fed will continue to raise borrowing costs and reduce its balance, and other central banks do not seek to tighten monetary policies, the dollar will be in demand.

Today, market attention will be paid to the publication of eurozone GDP data, as well as the values of consumer inflation in Germany and the index of consumer confidence from NE in the States.

Forecast of the day:

The EUR / USD currency pair is trading below 1.1390, consolidating in anticipation of the publication of data on consumer inflation in the eurozone and employment in the United States, which will be released on Friday. If the pair fails to grow above 1.1390 and gain a foothold, then it may not continue to decline to 1.1300.

The EUR / GBP currency pair is trading below 0.8895. The pair is supported by the unresolved problem of Britain's exit from the EU, as well as the apparent slowdown in economic growth in the UK. Following the meeting of the Bank of England, which will be held this week, the pair may continue the upward trend to 0.8935, breaking the level of 0.8895.

BeznbP0mHD_YnVay8-dluZJoBsf0Aqiip_cArKkp

d9UcvBkNXP_irLxO7i9VfURxXSDPjXa4k5_-UpKX

The material has been provided by InstaForex Company - www.instaforex.com

The forecast for EUR / USD for October 30, 2018

EUR / USD

On Monday, good data on income and expenditure of consumers in the US in September came out. Personal income increased by 0.2% (the forecast was 0.4%), expenses coincided with expectations of 0.4%. The euro is a little hooked (-30 points), without changing the whole technical picture. Potential rising correction is still determined by three main resistances; 1.1432, 1.1470, 1.1510, indicator and trend lines of the daily timeframe.

CCgPRm4UjYtGAxDfxVZaOis8MnqxD8v_7zKjeBuW

On the H4 chart, the price remains below the balance line and the Kruzenshtern line. The last one and the price is trying to approach the level of 1.1432, which coincides with the minimum of October 19 and 10. The Marlin oscillator, which turns up from the zero line, tells us about this price intention. The data can help the euro on the number of unemployed in Germany. The October forecast is -12 thousand versus -23 thousand in September.

nGPqSq1wlLICdMDsgeD4hM8udesIuiTcGULfTYLz

In the event of market confusion, the bears can take advantage of the situation and try again to attack at least Friday to achieve the long-term goal of 1.1300.

The material has been provided by InstaForex Company - www.instaforex.com

The forecast for GBP / USD for October 30, 2018

GBP / USD

The British pound is even closer on Monday to the control level of 1.12775, the consolidation under which will allow you to feel the strength to go to the strong nested line of the price channel in the area of 1.2620.The attack on the control level will coincide with the turn of the signal line of the Marlin oscillator on the four-hour chart.

Gk-E_teFJci7cgkPueq8HOI-fDaGOPGkw6MZIzJ6

B0k-IWMPAYnKknuKhQbWoR4laY9oDwlDKIGOOSSW

The price output above the resistance of the trend line of the price channel (higher than yesterday's maximum) will allow the price to break through to the resistance of the Kruzenshtern trend indicator line on a daily scale (1.2936). The level is strong, at least on October 3 and a maximum of August 22 (approximately). We are waiting for a reversal from it to 1.2620. This scenario has expectations for today's data. CBI's retail sales balance in the UK from October is expected to increase from 23 to 27. The US consumer confidence index from the Conference Board in October is expected to decrease from 138.4 to 136.3. In general, the situation remains more "bearish".

The material has been provided by InstaForex Company - www.instaforex.com

The forecast for AUD / USD for October 30, 2018

AUD / USD

On Monday, the Australian dollar returned under the embedded trend line, having fallen by a general strengthening of the American dollar by 38 points, but this morning, the "Australian" decided to work out the construction data. Yesterday, sales of new homes in September showed an increase of 1.1%, this morning, the number of permits issued for new construction showed an increase of 3.3% in September.

Visually, the price winds up on the Kruzenshtern line (blue) on a four-hour scale. The current reading of the indicators indicates a high degree of price growth to 0.7132, to the resistance of the Kruzenshtern line of daily scale. Probably, from this line, there will be a price reversal towards the main trend. Fixing at the minimum of yesterday's day will allow the "Australian" to conduct another attack to the nearest line of the price channel, as it was on Friday, only to the level of 0.7000.

analytics5bd7de0f028b1.png

analytics5bd7de1c7f4da.png

The material has been provided by InstaForex Company - www.instaforex.com

Fractal analysis of major currency pairs on October 30

Dear colleagues.

For the Euro / Dollar currency pair, the price is in a correction from the downward structure on October 16 and we expect further development of the downward trend after the breakdown of 1.1346. For the Pound / Dollar currency pair, the potential value for the bottom is considered the level of 1.2719, from which we expect a rollback to the correction. For the Dollar / Franc currency pair, the upward trend continuation is expected after the breakdown of 1.0038. For the currency pair Dollar / Yen, the price forms the potential for the top of October 26. For the currency pair Euro / Yen, the price is in the correction and forms the potential for the top of October 26. For the Pound / Yen currency pair, we expect to register potential initial conditions for the upward movement in the correction zone.

Forecast for October 30:

Analytical review of H1-scale currency pairs:

h802sjgZvZA3ks5uRb1OHlOjgOXdMN6fWxTWJ5lN

For the Euro / Dollar currency pair, the key levels on the H1 scale are: 1.1472, 1.1433, 1.1380, 1.1346, and 1.1299. Here, we continue to follow the development of the downward cycle of October 16. At the moment, the price is in the correction. The short-term downward movement, as well as consolidation is expected in the range of 1.1380 - 1.1346. The potential value for the bottom is considered the level of 1.1299, the movement to which is expected after the breakdown of 1.1346.

The short-term upward movement is possible in the range of 1.1410 - 1.1433 and the breakdown of the latter will lead to the development of a protracted correction. Here, the target is 1.1472 and this level is the key support for the bottom.

The main trend is the downward structure of October 16, the stage of correction.

Trading recommendations:

Buy 1.1410 Take profit: 1.1430

Buy 1.1435 Take profit: 1.1470

Sell: 1.1379 Take profit: 1.1348

Sell: 1.1344 Take profit: 1.1305

9y2oCqffziK_yyejnYdFjBSTzMQWDLqvMxUORe8p

For the Pound / Dollar currency pair, the key levels on the H1 scale are: 1.3044, 1.2979, 1.2909, 1.2866, 1.2802 and 1.2719. Here, we are following the development of the downward structure of October 12. The downward movement is expected after the breakdown of 1.2802. In this case, the potential target is 1.2719, after reaching this level, we expect a departure to the correction.

The short-term uptrend is possible in the range of 1.2866 - 1.2909 and the breakdown of the last value will lead to a prolonged correction. Here, the goal is 1.2979 and this level is the key support for the downward structure. Its price passage will have to form the initial conditions for the top. In this case, the potential goal is 1.3044.

The main trend is the downward cycle of October 12.

Trading recommendations:

Buy: 1.2866 Take profit: 1.2906

Buy: 1.2912 Take profit: 1.2970

Sell: Take profit:

Sell: 1.2800 Take profit: 1.2725

Z9xmsWkLgwuj1tjcwFjex_M7eshxgov-vTX3IupI

For the Dollar / Franc currency pair, the key levels on the H1 scale are: 1.0131, 1.0108, 1.0066, 1.0038, 0.9982, 0.9963, 0.9936 and 0.9914. Here, we continue to monitor the rising structure of October 15. At the moment, the price is in correction. The short-term upward movement is expected in the range of 1.0038 - 1.0066, as well as consolidation. The breakdown of the level 1.0066 should be accompanied by a pronounced upward movement. Here, the target is 1.0108. The potential value for the top is considered the level of 1.0131, upon reaching which we expect a rollback downwards.

The short-term downward movement is possible in the range of 0.9982 - 0.9963 and breaking the last value will lead to a prolonged correction. Here, the target is 0.9936 and the range of 0.9936 -0.9914 is the key support for the upward structure. From the level of 0.9914, we expect the initial conditions for the downward cycle.

The main trend is the ascending structure of October 15, the stage of correction.

Trading recommendations:

Buy: 1.0040 Take profit: 1.0066

Buy: 1.0070 Take profit: 1.0108

Sell: 0.9960 Take profit: 0.9938

Sell: 0.9934 Take profit: 0.9916

FjbAkKgox-lGgcPe8nY_5BdTKsGYffyANGxMx0w2

For the Dollar / Yen currency pair, the key levels on the scale of H1 are: 113.46, 113.01, 112.64, 112.21, 111.95, 111.63 and 111.35. Here, the price forms the potential starting conditions for the top of October 26. The continuation of the upward movement is expected after the breakdown of 112.64. In this case, the target is 113.01 and the consolidation is near this level. The breakdown of the level of 113.01 will lead to the movement to the potential target of 113.46, from this level we expect a rollback to the correction.

The short-term downward movement is possible in the range of 112.21 - 111.95 and the breakdown of the latter value will lead to a prolonged correction. Here, the goal is 111.63 and this level is the key support for the upward structure.

The main trend: the formation of potential for the top of October 26.

Trading recommendations:

Buy: 112.66 Take profit: 113.00

Buy: 113.05 Take profit: 113.42

Sell: 112.20 Take profit: 111.97

Sell: 111.92 Take profit: 111.68

aeeOq2bimxqw9pfy0RUTsorqnBxowNSKjztnMEpQ

For the Canadian dollar / Dollar currency pair, the key levels on the H1 scale are: 1.3269, 1.3222, 1.3191, 1.3168, 1.3122, 1.3060, 1.3029 and 1.2996. Here, we are following the local structure for the top of October 24th. The upward movement is expected after the breakdown of the level of 1.3122. In this case, the target is 1.3168 and in the range of 1.3168 - 1.3191 is the consolidation. The breakdown of the level of 1.3191 will lead to the movement to the level of 1.3222, near this level is the consolidation. The potential value for the top is considered the level of 1.3269, upon reaching which we expect a rollback to the correction.

The short-term downward movement, possibly in the range of 1.3060 - 1.3029, hence the probability of a reversal upwards. The breakdown of the level 1.3029 will lead to a prolonged correction. Here, the target is 1.2996.

The main trend is the ascending structure of October 16, the local structure of October 24.

Trading recommendations:

Buy: 1.3122 Take profit: 1.3166

Buy: 1.3192 Take profit: 1.3220

Sell: 1.3060 Take profit: 1.3033

Sell: 1.3027 Take profit: 1.2998

eH1XeG4RHB6LTELswdjVvESoE_4Mn3_ORtfpAxps

For the Australian dollar / dollar currency pair, the key levels on the H1 scale are: 0.7189, 0.7167, 0.7136, 0.7110, 0.7062, 0.7040 and 0.7017. Here, the price forms the potential for the top of October 26. The short-term upward movement is possible in the range of 0.7110 - 0.7136 and the breakdown of the latter value will lead to a pronounced movement. Here, the target is 0.7167. The potential value for the top is considered to be the level of 0.7189, after reaching which we expect consolidation.

The short-term upward movement is possible in the range of 0.7062 - 0.7040 and the breakdown of the latter value will lead to the cancellation of the ascending structure from October 26. In this case, the first target is 0.7017.

The main trend is the formation of potential for the top of October 26.

Trading recommendations:

Buy: 0.7110 Take profit: 0.7134

Buy: 0.7138 Take profit: 0.7165

Sell: 0.7060 Take profit: 0.7040

Sell: 0.7038 Take profit: 0.7017

3XYb-YG5hI7qfKgMU56ChqXk9F7yJJANlZEoceaY

For the Euro / Yen currency pair, the key levels on the H1 scale are: 128.74, 128.44, 128.08, 127.84, 127.40, 127.17, 126.82 and 126.43. Here, we continue to monitor the downward structure of October 22. At the moment, the price is in the correction and forms the potential for the top of October 26. The short-term downward movement is possible in the range of 127.40 - 127.17 and the breakdown of the latter value will lead to the movement to the level of 126.82, from this level, there is a high probability of recoil upwards. The potential value for the bottom is considered the level of 126.43, after reaching which we expect a rollback to the top.

The short-term uptrend is possible in the range of 127.84 - 128.08 and the breakdown of the last value will lead to a prolonged correction. Here, the goal is 128.44 and this level is the key support for the downward structure of October 22. Its breakdown will have to form an upward structure. In this case, the goal is 128.74

The main trend is the downward structure of October 22, the stage of correction.

Trading recommendations:

Buy: 127.84 Take profit: 128.06

Buy: 128.15 Take profit: 128.44

Sell: 127.40 Take profit: 127.20

Sell: 127.15 Take profit: 126.84

y6s3-kW2smNaC2In1pm1vhfFPE5rFHP7MJM3OIHY

For the Pound / Yen currency pair, the key levels on the H1 scale are: 146.39, 146.03, 145.28, 144.76, 143.84, 143.19 and 142.24. Here, we are following the downward structure of October 16. The short-term downward movement, as well as consolidation is possible in the range of 143.84 - 143.19 and the breakdown of the latter value will lead to movement to the potential target of 142.24, upon reaching this level we expect a rollback to the top.

The short-term uptrend is possible in the range of 144.76 - 145.28 and the breakdown of the last value will lead to a prolonged correction. Here, the target is 146.03 and the range of 146.03 - 146.39 is the key support for the downward structure. We are waiting for the initial conditions for the top to reach it.

The main trend is the downward structure of October 16.

Trading recommendations:

Buy: 144.76 Take profit: 145.26

Buy: 145.32 Take profit: 146.03

Sell: 143.84 Take profit: 143.22

Sell: 143.16 Take profit: 142.30

The material has been provided by InstaForex Company - www.instaforex.com

Fundamental Analysis of GBP/USD for October 30, 2018

GBP/USD has been impulsive with the recent bearish momentum which is expected to lead to further bearish pressure in the coming days. Despite the recent mixed economic reports having better results in some medium impact economic reports, GBP is struggling to gain momentum over USD which does indicate the weakness of the currency in the process.

This week GBP Official Bank Rate report is going to be published which is expected to be unchanged at 0.75% whereas the Monetary Policy Summary is also expected to be quite neutral in the process. Recently Britain has raised its official forecast for the economic growth in 2019 as GDP may grow to 1.6% which was forecasted to be at 1.3%, while the outlook for subsequent years was unchanged. Recently GBP Net Lending to Individuals report showed an increase to 4.7B from the previous figure of 4.3B which was expected to be at 4.1B, M4 Money Supply decreased to -0.3% from the previous positive value of 0.1% which was expected to increase to 0.3% and Mortgage Approvals decrease to 65k as expected from the previous figure of 66k. Today CBI Realized Sales report is going to be published which is expected to increase to 27 from the previous figure of 23.

On the USD side, having mixed economic reports recently, the currency failed to raise impulsively over GBP recently. Ahead of the upcoming NFP reports which are also expected to be quite mixed with the outcomes, USD gains may take a bit longer to generate against GBP this week. Today S&P/CS Composite -20 HPI report is going to be published which is expected to increase to 6.0% from the previous value of 5.9% and CB Consumer Confidence report is expected to decrease to 136.3 from the previous figure of 138.4.

As of the current scenario, this week is going to be quite volatile and corrective having high impact economic reports on the both currencies of the pair whereas GBP having certain hawkish expectations for the coming months may lead to certain gains whereas if USD performs better in NFP and upcoming economic reports throughout the week looking over the expectations certain gains on the USD side may also be observed. To sum up, currently, USD is expected to gain momentum over GBP for a certain period before GBP tries to counter with positive reports.

Now let us look at the technical view. The price has recently retested 1.2850 area with a daily close after the break below the area. As per current price action, the price is expected to push lower towards 1.2500-50 support area in the coming days as the price remains below 1.2950 with a daily close.

SUPPORT: 1.2500-50

RESISTANCE: 1.2850, 1.2950

BIAS: BEARISH

MOMENTUM: NON-VOLATILE and IMPULSIVE

analytics5bd7fb86c6d0b.png

The material has been provided by InstaForex Company - www.instaforex.com