GBP/USD
Yesterday, the British pound fell by 102 points, but not on good data on the US economy, as we expected in yesterday's review, but on the contrary, due to the collapse of the stock market; S&P 500 lost -3,09%, Nasdaq -4,43%. Sales of new homes in the US in September fell from 585,000 to 553,000 against expectations of growth to 627,000, but the stock markets, of course, did not fall due to the difference with expectations of 74,000, even this morning, the US media did not find reasons for this. According to our version, the era of bayback is coming to an end – corporations sell shares of their own companies purchased in the period 2016/18. And if this is the case, then the stock market is facing very big difficulties, which, in turn, encourages investors to buy back dollars.
The British pound consolidated below the blue line of the Krusenstern on the daily chart. This has overcome the last hurdle for further mid-term price reductions. All technical conditions for a reduction on the daily and H4. There is only one small exception – a double convergence formed on the H4 on the Marlin oscillator, which warns of a possible correction. It seems that this correction will not be higher than the Krusenstern line of the daily chart (1.2938), this will produce a retest of the price. In case of overcoming the support of the price channel line at 1.2844, we expect a further decline to the subsequent trend line of this channel in the area of 1.2622.
The material has been provided by InstaForex Company - www.instaforex.com