GBPUSD Technical Analysis 08.11.2018

The British pound rose during the US session to its highest since October 17 against the US dollar following developments and economic data that followed Wednesday on the British Royal Economy. Following the disclosure of the results of the midterm elections of the US Congress and on the eve of the start of the meetings of the Committee Federal Open Market today and Thursday in Washington.

GBPUSD rallied 0.36% to 1.3146 compared to opening levels at 1.3100 after the pair hit a three-week high of 1.3175 while the session's low was at 1.3074.

We followed the RBA reading of the Halifax Home Price Index, which showed a 0.7% gain from a 1.3% drop in September, beating expectations for a 0.5% rise, while the annual reading of the same index for the three months ending in October, October growth slowed to 1.5% from 2.5%, beating expectations of 1.3%.

Technical Analysis:

GBPUSD is showing some slight bearish bias after approaching the 1.3200 barrier yesterday, and we see that Stochastic is negatively negating near the overbought areas, awaiting a positive stimulus that supports chances of resuming the upside in the coming sessions.

In general, we continue to swing the upside with support from the moving averages 7-20-55 unless the 1.2962 level is broken and stability below it, noting that our awaited targets start at 1.3226 then 1.3300.

The trading range for today is expected among 1.3060 support and 1.3240 support

Support and resistance:

Resistance 1.3170-1.3240-1.3280

Support: 1.3210-1.3060-1.3000

Outlook for the day: buying the pair at 1.3120 and targets at 1.3170-1.3240 and stop loss below 1.3060