Analytics and trading signals for beginners. How to trade GBP/USD on December 1? Analysis of Monday deals. Getting ready

Trading 30 Nov 2020 Commentaire »

Hourly chart of the GBP/USD pair

analytics5fc547636dd3e.jpg

The GBP/USD pair faced multidirectional trading on Monday, November 30. It is extremely difficult for novice traders to trade this pair right now. Over the past few weeks, quotes have repeatedly overcome rising trend lines and channels, thus breaking the seemingly upward trends, at first glance. However, it went back to moving up. In recent days, the quotes have been tightly stuck between the levels of 1.3397 and 1.3292, i.e. approximately in the stop-point of the horizontal channel. During the day, the pound/dollar pair was trading neatly in the middle of the horizontal channel, changing direction several times. Therefore, there is no trend right now, the horizontal channel is too narrow to look for short-term trends inside it, and the price also manages to move extremely erratically within the day. Therefore, we advise you to be very careful when trading this pair or do not trade it at all.

The fundamentals on Monday were even more confusing than the technical picture. By and large, the trade talks between the EU and the UK is still the key topic. However, both parties have great difficulty moving forward and are constantly on the verge of failure. For example, Michel Barnier said that negotiations could be completed on Wednesday, and British officials believe that everything should be decided this week. Novice traders need to understand the essence of these negotiations. If the trade deal fails, Britain and the EU will trade with duties and tariffs starting on January 1, 2021. Not as two friendly powers, but as countries that see each other for the first time. Naturally, this will negatively affect the volume of imports and exports in both directions, and the fall in these indicators will negatively affect production, business, GDP and the economy as a whole. Both for the European Union and Great Britain. This, of course, will be a much bigger blow for Great Britain than it is for the EU. Therefore, no deal = serious contraction of the British economy and, very likely, a strong fall in the British currency.

The UK Manufacturing Business Activity for November will be released tomorrow. This indicator is expected to remain at 55.2, which is a fairly high value. However, trade negotiations and their results are of much greater importance for the British pound right now, and not business activity. We are still expecting the pound to start falling, just like the European currency. There is practically no important information coming from America at this time.

Possible scenarios for December 1:

1) Traders failed to overcome the 1.3397 level, and so the pair has just been trading in a horizontal channel for a week. Therefore, long deals are irrelevant now. You have to wait for a new upward trend or until the 1.3397 level has been overcome in order to be able to expect the return of the upward trend.

2) Short deals, from our point of view, are more convenient now, and for a number of reasons. The upward trend line has been overcome, the pound has been growing for a long time, the fundamental background is still not in favor of buyers. Therefore, we believe that the downward movement will extend until next week. In order to be able to open short positions, novice traders are advised to wait for the upward correction, afterwards a new sell signal from MACD. Aim for support levels 1.3281 and 1.3242.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.

The MACD indicator consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).

Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.

The material has been provided by InstaForex Company - www.instaforex.com

Analytics and trading signals for beginners. How to trade GBP/USD on December 1? Analysis of Monday deals. Getting ready

Trading 30 Nov 2020 Commentaire »

Hourly chart of the GBP/USD pair

analytics5fc547636dd3e.jpg

The GBP/USD pair faced multidirectional trading on Monday, November 30. It is extremely difficult for novice traders to trade this pair right now. Over the past few weeks, quotes have repeatedly overcome rising trend lines and channels, thus breaking the seemingly upward trends, at first glance. However, it went back to moving up. In recent days, the quotes have been tightly stuck between the levels of 1.3397 and 1.3292, i.e. approximately in the stop-point of the horizontal channel. During the day, the pound/dollar pair was trading neatly in the middle of the horizontal channel, changing direction several times. Therefore, there is no trend right now, the horizontal channel is too narrow to look for short-term trends inside it, and the price also manages to move extremely erratically within the day. Therefore, we advise you to be very careful when trading this pair or do not trade it at all.

The fundamentals on Monday were even more confusing than the technical picture. By and large, the trade talks between the EU and the UK is still the key topic. However, both parties have great difficulty moving forward and are constantly on the verge of failure. For example, Michel Barnier said that negotiations could be completed on Wednesday, and British officials believe that everything should be decided this week. Novice traders need to understand the essence of these negotiations. If the trade deal fails, Britain and the EU will trade with duties and tariffs starting on January 1, 2021. Not as two friendly powers, but as countries that see each other for the first time. Naturally, this will negatively affect the volume of imports and exports in both directions, and the fall in these indicators will negatively affect production, business, GDP and the economy as a whole. Both for the European Union and Great Britain. This, of course, will be a much bigger blow for Great Britain than it is for the EU. Therefore, no deal = serious contraction of the British economy and, very likely, a strong fall in the British currency.

The UK Manufacturing Business Activity for November will be released tomorrow. This indicator is expected to remain at 55.2, which is a fairly high value. However, trade negotiations and their results are of much greater importance for the British pound right now, and not business activity. We are still expecting the pound to start falling, just like the European currency. There is practically no important information coming from America at this time.

Possible scenarios for December 1:

1) Traders failed to overcome the 1.3397 level, and so the pair has just been trading in a horizontal channel for a week. Therefore, long deals are irrelevant now. You have to wait for a new upward trend or until the 1.3397 level has been overcome in order to be able to expect the return of the upward trend.

2) Short deals, from our point of view, are more convenient now, and for a number of reasons. The upward trend line has been overcome, the pound has been growing for a long time, the fundamental background is still not in favor of buyers. Therefore, we believe that the downward movement will extend until next week. In order to be able to open short positions, novice traders are advised to wait for the upward correction, afterwards a new sell signal from MACD. Aim for support levels 1.3281 and 1.3242.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.

The MACD indicator consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).

Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.

The material has been provided by InstaForex Company - www.instaforex.com

Belgium Economy Exits Recession In Q3

Trading 30 Nov 2020 Commentaire »

Belgium's economy rebounded strongly in the third quarter, thus exiting a technical recession, latest figures from the National Bank of Belgium showed Monday. Gross domestic product grew 11.4 percent from the second quarter, when it fell 11.8 percent. In the first quarter, the economy shrank 3.4 percent. Domestic demand recovered strongly with a 16.4 percent jump in household consumption and a 15.8 percent increase in housing investment. Business investments grew 7.3 percent, while public investment surged 20.7 percent. Imports rose 14.3 percent and exports grew 13.3 percent. Despite the considerable rebound on a quarterly basis, year-on-year growth remained clearly negative. GDP decreased 4.5 percent year-on-year in the third quarter after a 13.9 percent slump in the previous three months. "So, there is still no question of any return to levels of economic activity seen before the COVID-19 crisis," the bank said.


The material has been provided by InstaForex Company - www.instaforex.com

*U.S. Pending Home Sales Slump 1.1% In October

Trading 30 Nov 2020 Commentaire »

U.S. Pending Home Sales Slump 1.1% In October


The material has been provided by InstaForex Company - www.instaforex.com

*Chicago Business Barometer Drops To 58.2 In November

Trading 30 Nov 2020 Commentaire »

Chicago Business Barometer Drops To 58.2 In November


The material has been provided by InstaForex Company - www.instaforex.com

*Canadian Building Permits Plunge 14.6% In October

Trading 30 Nov 2020 Commentaire »

Canadian Building Permits Plunge 14.6% In October


The material has been provided by InstaForex Company - www.instaforex.com

*Canadian Industrial Product Price Index Fell 0.4% In October

Trading 30 Nov 2020 Commentaire »

Canadian Industrial Product Price Index Fell 0.4% In October


The material has been provided by InstaForex Company - www.instaforex.com

November 30, 2020 : EUR/USD daily technical review and trade recommendations.

Trading 30 Nov 2020 Commentaire »

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In October, Two opportunities for SELL Entries were offered upon the recent upside movement towards 1.1880-1.1900. All target levels were achieved.

However, after such downside movement, evident signs of bullish reversal were demonstrated around the depicted price levels of 1.1600.

Shortly after, the EUR/USD pair has demonstrated a significant BUYING Pattern after the recent upside breakout above the depicted price zone (1.1750-1.1780) was achieved.

As mentioned in the previous article, the pair has targeted the price levels around 1.1920 which exerted considerable bearish pressure bringing the pair back towards 1.1800 which constituted a prominent KEY-Zone for the EUR/USD pair.

Recently, the price zone around 1.1840 was mentioned as a prominent KeyZone to be watched for Price Action. Since then, the pair has been failing to breakthrough below it.

That's why, another upside movement was expressed towards 1.1950-1.1980 where price action should be watched for possible bearish rejection.

Moreover, Bearish closure below the mentioned price zone of 1.1840 is needed to turn the intermediate outlook for the pair into bearish and enhance a quick bearish decline towards 1.1750.

Trade Recommendations :-

Currently, the price zone around 1.1950-1.1980 ( backside of the broken trendline ) stand as significant Resistance-Zone to offer a valid SELL Entry. Exit level should be placed above 1.2000

The material has been provided by InstaForex Company - www.instaforex.com

Euro Little Changed After German Inflation Data

Trading 30 Nov 2020 Commentaire »

At 8.00 am ET Monday, German flash consumer price data for November has been released. The euro changed little against its major counterparts after the data.

The euro was trading at 124.66 against the yen, 1.0833 against the franc, 0.8985 against the pound and 1.1975 against the greenback around 8:05 am ET.


The material has been provided by InstaForex Company - www.instaforex.com

November 30, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 30 Nov 2020 Commentaire »

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Back in August, Bullish Breakout above the price zone of 1.3300 was achieved. This was supposed to allow bullish pullback to pursue towards 1.3400 as a final projection target for the suggested pattern.

However, the GBP/USD pair failed to do so. Instead, another bearish movement was targeting the price level of 1.2840 and 1.2780 where bullish SUPPORT existed allowing another bullish movement initially towards 1.3000 which failed to maintain sufficient bearish momentum.

That's why, the recent bullish breakout above 1.3000 has enabled further bullish advancement towards 1.3250-1.3270 where the upper limit of the new movement channel came to meet the GBP/USD pair.

Further bullish advancement was expressed towards 1.3380-1.3400 where the pair looks overbought after failure of the previous price zone to offer sufficient bearish pressure on the pair.

Upon the recent bullish pullback, price action should be watched around the price levels of (1.3380-1.3400) for signs of bearish pressure as a valid SELL Entry could be offered.

Initial bearish target would be located at 1.3300 and 1.3250. While S/L should be placed above 1.3450.

The material has been provided by InstaForex Company - www.instaforex.com