GBP/USD Forecast: Is it darkest before dawn? Barnier's Brexit blow may create a buy opportunity
"Hangs in the balance" – that is the state of Brexit talks, according to reports citing Michel Barnier, the EU's Chief Negotiator. The headline has sent GBP/USD tumbling down nearly 100 pips from the highs, erasing all recent gains. He also reiterated the three contentious topics: fisheries, governance, and the level-playing field.
The French statesman poured cold water on Tuesday's optimism that negotiations were "entering a tunnel" – an EU term referring to off-the-radar intense talks aimed at resulting in a full egal agreement. He added that the next 36 hours are crucial. Read more...
GBP/USD spikes near HFT buying zone
We are analyzing high-frequency trading algorithms in the foreign exchange market this Wednesday morning and find that the GBPUSD pair shows interesting price behavior that may create some buying opportunities.
GBPUSD came down sharply earlier in the morning, almost touching the light HFT buying pressure zone that stands at 1.3337 and below in today's session. The price then bounces on volatile trading driven by Brexit headlines. Such volatility has become normal for GBP traders since the 2016 Brexit referendum. Therefore, it's important to remember that technical levels and patterns can be easily broken on such bouts of unexpected volatility. Read more...
GBP/USD bulls are getting ready for the next bounce
The GBP/USD is still bullish. We might see a potential bounce at the weekly confluence zone where the POC is.
The POC zone zomes at 1.3328-40. We can see historical buyers and series of higher highs and higher lows. If it happens watch out for a bounce above 1.3386 as a continuation. The final target is 1.3440. If 1.3340 breaks to the upside then 1.3456 and 1.3490 is next. Only below 1.3294, bears will have a chance to turn the tables. Read more...
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