Yesterday, in the European session the GBP/USD reached the maximum of 1.3311. This was a point that we explained in our analysis, you can read the additional comments.
This pair was affected by the Brexit related talks between the UK and the EU which postponed it to next week. Speculators had in mind that a deal should be closed this week which helped to strengthen the pound. However, investors stopped buying and we saw a drop to the 1.3189 support.
Investors expect a deal to be reached next week, otherwise it could further weaken the British pound.
In 4-hour charts we note that the pound could not fall below the SMA of 21 days pressure line key area which serves as strong support. But if the pair breaks through this level of 1.3200, we could see an advance in the fall of this par with the targets at 1.3170 and 1.3125.
The eagle indicator continues to show a bearish signal, as the medium-term target is in the zone of 1.3000, the level of the moving average EMA 200 days.
Our recommendation is to sell below 1.3190 with the medium-term targets up to the 1.3060 area. We could buy only if the pair remains above the 1.3210 key level.
Our forecast for November 12:
- Sell bellow 1.3210 with take profit at 1.3170 and 1.3125; Stop loss above 1.3160.
- Buy above around 1.3220 with target 1.3260. Stop loss, below 1.3175.
Our support and resistance levels for November 12,
Resistance (1) 1.3288 Support (1) 1.3166
Resistance (2) 1.3361 Support (2) 1.3117
Resistance (3) 1.3410 Support (3) 1.3045
