Yesterday evening’s President Trump’s tweeting in which he announced that he was holding talks with the Democrats on the stimulus package caused great volatility on the financial markets. Most of the financial instruments lost against the dollar. The British pound also became a victim of this volatility.

gbp/usd cable 07.10
The GBPUSD Daily – the bearish engulfing was created after Trump’s tweet…

Yesterday’s daily candle closed at 1.2870 and engulfed Mondays. The formation of the bearish engulfing was created.

ongoing analysis

On the daily interval the MACD oscillator is still in the growth phase. If the price knocks down out of the formation and the MACD goes into a downward phase – this may be a signal to take a sell position.

GBP/USD cable on h4
GBPUSD H4 – if the downward scenario and the price breaks the bottom of the formation, the supply target may be S/R 1.2780.

If the downward scenario were to work, the goal of supply can be seen in H4 chart 1.2780, which in September this year was a strong level of resistance, defeated only in the first October.

It should be remembered that there are two important macro events awaiting us that could affect the pound’s price. The first is tonight’s publication of the minutes of the FED meeting – 20:00, and the second is tomorrow’s (Thursday’s) conference with the Governor of BoE – A.Baileys.

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