Technical analysis 01.11.18

GBPUSD

The pair is trading above 1.2820 on the eve of the Bank of England monetary policy meeting. The meeting is not expected to bring favorable news for the GBP. Moreover, if the general market sentiment gets worse, the pair will likely reverse and drop.

The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is above the level of 50% and indicates a possible downwards reversal. Stoch are entering the overbought territory.

Trading recommendations:

If the pair goes below 1.2820, it may drop further down to 1.2695–1.2700.