MO GBPUSD – 11.12.18
37858
post-template-default,single,single-post,postid-37858,single-format-standard,bridge-core-2.5.6,ajax_fade,page_not_loaded,qode-page-loading-effect-enabled,,qode-title-hidden,qode_grid_1300,qode_popup_menu_text_scaledown,vss_responsive_adv,vss_width_600,transparent_content,qode-child-theme-ver-1.0.0,qode-theme-ver-24.1,qode-theme-bridge,disabled_footer_top,wpb-js-composer js-comp-ver-6.4.2,vc_responsive

MO GBPUSD – 11.12.18

Long Term Overview:

Economic Analysis

Recent Brexit negotiations are looking none favourable for the Pound, with a discrepancy between the EU and Britain over Prime Minster May’s post-Brexit immigration plan. In other news, The United States and Canadian government have forged a new trade agreement to replace the NAFTA, preserving President Trump’s ability to impose a 25 percent global tariffs on auto parts from Canada and Mexico – The USMCA trade deal is set to strength the dollar in the mid – long term. Strength in the Dollar is forecast to see a further growth after the Fed Interest Rate Decision being hawkish. From an Economic stand-point of view, Price may see a continued drop south in the GBPUSD in the Long term.

Long Term Analysis

Pound/Dollar bias is short on all monthly time frame charts presented. Price broke out of its Price Action Pullback into the 3Month EMAs after closing below previous lows on the second previous 3Month Candlestick. The United States Economy is forecast for greater growth than the United Kingdom Economy, due to the uncertainty of how Brexit will Affect the UK in the Long Term. Based on these factors, Price may see a continued push south nearing previous lows of the 1.2205 area within the next couple of months.

 

 

Decision Point: pullback into previous lows nearing the 1.3027 area

Long Term Trend: Short

Channel Range: N/A

Possible Bias: Short

Medium Term Analysis

Bias is short on both the Monthly and 2week Charts, however price has been consolidating on the Weekly. Price has since then recovered after the previous weekly candlestick testing previous lows and the current weekly candlestick forming a Bearish shooting star candlestick. Price may see further indecision around this area, before seeing a supplementary influx in Sellers and push to previous lows around the 1.2663 area within the next couple of weeks.

 

 

Decision Point: Close below a previous low nearing the 1.2957 area

Long Term Trend: Short

Channel Range: N/A

Possible Bias: Short