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7th Nov 2014 GBP/USD Analysis

7th Nov 2014 GBP/USD Analysis

dollar, Pound, Sterling, Pound Sterling, Sterling Pound, GBP, GBP/USD, GBP/USD Forecast, GBPUSD analysis, GBPUSD outlook, GBPUSD technical analysis, Bank of England, BOE, Mark Carney, U.S Dollar, USD, GBP/USD outlook, GBPUSD forecast, GBP/USD projections, GBPUSD projections, MPC, monetary policy committee, forward guidance, asset purchase facility Cable slides below 1.5900 support which was last seen in September 2013.

dollar, Pound, Sterling, Pound Sterling, Sterling Pound, GBP, GBP/USD, GBP/USD Forecast, GBPUSD analysis, GBPUSD outlook, GBPUSD technical analysis, Bank of England, BOE, Mark Carney, U.S Dollar, USD, GBP/USD outlook, GBPUSD forecast, GBP/USD projections, GBPUSD projections, MPC, monetary policy committee, forward guidance, asset purchase facility 1.582 support was noted on the H4 charts as the 20 SMA acted as resistance, resulting in 1.5900 support broken lower.

dollar, Pound, Sterling, Pound Sterling, Sterling Pound, GBP, GBP/USD, GBP/USD Forecast, GBPUSD analysis, GBPUSD outlook, GBPUSD technical analysis, Bank of England, BOE, Mark Carney, U.S Dollar, USD, GBP/USD outlook, GBPUSD forecast, GBP/USD projections, GBPUSD projections, MPC, monetary policy committee, forward guidance, asset purchase facility Retracement of the bearish trend was complete as the Traditional MACD remains in the bearish zone, with the 200 moving average above the 104 moving average all dipping downwards.

No change was expected, no change was effected, the Bank of England maintained its stance on a premature bank rate adjustment and left it untouched, as well as the Asset Purchase Facility. Pound sterling fell on the lack of  activity which dulled growth expectations, and coupled with the effects of the ECB’s scale of asset purchase and possible further monetary stimulus, ended the day close to 1.582.

Trade balance data today could swing Cable lower towards 1.5800-1.577 as an estimated fall may push the Pound weaker agains the dollar, before the U.S non farm employment change data.

intraday movements may show corrections after the drop yesterday but the lack of optimism may keep Cable below the levels of 1.5900. Further bearish pushes may cause the pair to drop to 1.577-1.567. On the upside, breaking above 1.5900, 1.5926 and 1.6024 remains possible targets but the lack of positive stimulus in terms of fundamental data make this look unlike, unless of course a more than expected drop in U.S NFP data.

Trend Direction
S3
S2
S1
R1
R2
R3
Entry
Stop Loss
Exit
 Slight Bearish1.5671.5771.5821.58561.59001.5925

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