Volumetric analysis on October 23
Yesterday US dollar was strengthening. In general, this is also characteristic of a global trend. The US economy is much stronger than other economies. The raise of interest rates in the United States withdraw money from circulation. All this makes the US dollar stronger, and the end of this is not yet visible. But England is opposite. News about Brexit is constantly appearing in the media. In general, it is not stable, but, nevertheless, the GBPUSD quotation for yesterday fell according to our expectations. Today, we can try to implement the second part of our scenario - wait for corrective growth of 1.3020-1.3045 and expect a decline from there towards 1.2980. We strongly advise in the resistance zone to wait for an additional pattern or signal to decline, since the resistance is small, and in the case of a breakdown level of 1.3045 this will not mean a reversal, this will only speak about the weakness of the trend. On the other hand, the close of yesterday's trading session at the low of the day just says that the trend is strong, and the expected corrective growth may not be at all. The price just might fall. Hop up for sale at current prices or wait for more profitable - the decision as always for the trader.
The pair is confidently trading in the price range of 112.90 - 111.60. The volume of the whole futures contract is concentrated in this range. As always, there are two ways for this pair, but before trade decision, it is necessary to wait for the initiative of one of the parties. Scenario number one. Break of the level at 112.90. Yesterday this did not happen, but the price went very deep into the resistance of 112.90-112.60. In principle, this is a sign that 112.90 will be broken, and if this happens, you can count on a corrective decline and then consider the growth of quotations as the main direction, which can last for a long time. However, the alternative scenario is still trading sideways in a range of 112.90-111.60. We are now in resistance, which means that sales should be considered. We strongly recommend to wait for the initiative of the sellers. To do this, we should see a breakdown of support at 112.35, where a sufficiently large volume is concentrated, and after correction we can count on the continuation of the decline to the level of 111.95.