General analysis GBPUSD for 17.11.2021
GBP/USD: general analysis
Current Dynamics
GBP/USD strengthened minimally yesterday despite strong US retail sales and industrial production release. At the same time the UK labor market data was more significant for the dynamics of the pair. The British economy created 245 k jobs in September while a month earlier it had added 235 k. In both cases the data strongly exceeded the forecasts. Thanks to growth in employment, the unemployment rate fell to 4.3%.
At the same time, the British regulator expressed concern about rising prices, so it is not surprising that the UK consumer price index released today exceeded the forecast. The Bank of England is close to a monetary policy tighten, however the USD is also very strong at the moment, so it might be a good idea to consider crosses with weaker currencies such as EUR/GBP or GBP/JPY for trading. It is also worth noting that in the near future the issue of the U.S. public debt will become important again. The Treasury Secretary Janet Yellen urges the Congress to raise the debt ceiling because the government will not have the resources to fulfill its obligations on December 15. Increased uncertainty will support the dollar as a safe-haven asset.
Today at 15:30 (GMT+2) the U.S. real estate market data is expected to be released.
Support and resistance levels
On the 4-hour chart there is an uptrend correction. The instrument is consolidating near the middle moving Bollinger Band, which is the key support level. The indicator is directed upward and the price range has contracted, which confirms the corrective dynamics. MACD histogram and Stochastic oscillator do not give a clear signal to enter the market.
- Support levels: 1.3300, 1.3350, 1.3390, 1.3435.
- Resistance levels: 1.3475, 1.3525, 1.3600, 1.3650.
Trading scenarios
- Long positions should be opened at the current price with a target of 1.3520 and a stop-loss at 1.3380. Implementation period: 2-3 days.
- Short positions can be opened below the level of 1.3390 with a target of 1.3325 and a stop-loss at 1.3425. Implementation period: 2-3 days.