Exclusive GBP/USD Analysis 28.11.2016
GBP/USD Month End Flows Have The Strong Impact on The British Pound
The GBP/USD is going up strengthened by the good Autumn forecast statement and Second Estimate GDP. Additionally, we saw USD weakening as there could be a possible vote recount in Michigan, Wisconsin and Pennsylvania. But earlier today EUR/GBP demand tanked the GBP strongly. Seems like Bundesbank has been buying EUR/GBP around month ends so we might assume sell into rallies on GBP/USD might continue.
From a technical perspective we see a strong bearish pressure where 2 trend line have been broken. POC1 1.2420-35 (L4, trend line, bearish order block) and POC 2 1.2440-55 (trend line, L3, EMA89,DPP) could reject the price on a retest towards 1.2360. Break below 1.2360 targets 1.2300. Sell on rallies is still the valid option especially when we assume that the strong bank might be behind the move.
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Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets