ExoticTrading is a series of analyzes, which is created in collaboration with the broker InterTrader and is published on Comparic every Monday, Wednesday and Friday. The theme as the name suggests are so called- exotic currency pairs.
Due to very weak industrial production data published in the UK GBP showed rapid weakness, resulting that market came around levels 17.04 and 61.8% of Fibonacci correction of previous increases. Overcoming this zone could pave the way for further declines, even in the vicinity of the November lows.
As a result of ongoing increases from May this year, the market in October, broke the upper band of the downward channel formation which was forming a flag pattern. The increases were so dynamic that without any problem also overcame resistance around 8.8400 as a result of which we find ourselves at the highest levels since March 2009. Actually, we see declines, and if only there will not occur a sudden strong reaction of demand, market will end week at current or lower level. In near future we can expect continuation of declines even in surroundings of already mentioned level 8.8400 or further, to the upper limit of the recent downward channel.
To invest in exotic pairs take advantage of low spreads at the broker InterTrader which at the time of creation of this analysis for each instrument in turn were 1.4 and 14.2 pip.