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