GBPUSD drops from 50-DMA ahead of BOE, Brexit talks

2021년 11월 4일

GBPUSD bears retake controls on the key Thursday comprising Bank of England (BOE) monetary policy meeting and important Brexit talks in Paris. Technical set-up hints at further weakness on the pair’s inability to rise past 50-DMA, coupled with the bearish MACD signals. However, a clear downside break of a five-week-long support line, near 1.3615, becomes necessary. Also probing the sellers is the latest swing low surrounding August month’s trough close to the 1.3600 threshold. In a case where prices remain weak past 1.3600, July’s low of 1.3570 will act as a buffer before dragging the quote to the yearly bottom of 1.3410.

Meanwhile, a surprise positive fueling the pair above the 50-DMA level of 1.3705 will aim for a downward sloping resistance line from mid-September, around 1.3810. Following that, the 200-DMA level 1.3846 will be a tough nut to crack for the GBPUSD bulls before heading towards September’s peak of 1.3913 and the 1.4000 psychological magnet.