Still on the sidelines here. Structure just too restricted!

29 нояб. 2017 г.

There has been a substantial amount of ‘Brexit’ noise this week, consequently providing support to the GBP/USD. Amid Wednesday’s sessions, October’s opening level seen on the H4 timeframe at 1.3367 was consumed, allowing the H4 candles to advance and top just ahead of the H4 mid-level resistance pegged at 1.3450. Alongside this, daily price recently crossed above daily resistance at 1.3371. Although this is considered a bullish signal, it might be worth noting that to the left of current price there is also a reasonably nice-looking daily supply marked with a black arrow at 1.3456-1.3384. Weekly price on the other hand, looks poised to attack the weekly channel resistance line extended from the high 1.2673, after recently cracking through weekly resistance coming in at 1.3301.

Suggestions:

Long: Difficult, despite weekly price suggesting an advance. Besides the H4 mid-level resistance at 1.3450, there’s also the daily supply mentioned above at 1.3456-1.3384 to contend with.

Short: Also tricky. Weekly price shows room to advance, plus we now have a nearby daily resistance-turned support in view at 1.3371.

Data points to consider: US unemployment claims at 1.30pm; US core PCE index m/m; US Chicago PMI at 2.45pm; FOMC member Quarles speaks at 5.30pm; FOMC member Kaplan speaks at 6pm GMT.