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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GBP/USD Chart

Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets

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Nenad Kerkez

Nenad Kerkez is an analyst and trader who has been in the market since 2008 and works closely with Admiral Markets as their Senior Lecturer and Market Analyst. Nenad covers over 25 currencies on an intraday basis and has a Masters in economics. He also developed CAMMACD TM, a proprietary trading and analysis strategy wit ever powerful pre fact setups that you can read every day. Nenad is also a valuable presenter on various FX EXPO shows, where he always presents new and interesting ways how to trade price action and protect your own investments. Further, he is the co-founder and head of Elite Currensea Trading, an educational website for currency traders.