This week, the talks on Brexit is due to continue , which may be decisive for the British pound. The news could be that the pound could rise and decline quickly, if the data is not favorable. So be ready for higher volatility.
It is essential to remember that both sides have agreed an expiration date on December 31, when the transition period ends. Until then, the pound will be very sensitive to any news about Brexit.
At the technical analysis level, we note that the pound is above the pivot point of 4/8, while it remains above the 1.3168 level, there is a possibility that it will rise to 1.3278, a resistance zone. The target in the medium term is seen at 1.3384.
According to market sentiment, there are 62% of traders and companies that are selling the pound, which means that this pair can continue to rise to 1.3380 as a short-term objective.
Our recommendation is to buy above 1.3170 and sell below 1.3135. These are the key zones to trade according to the trend.
Our Forecast for November 16:
Sell bellow 1.3135 with take profit in 1.3065 and 1.3011. Stop loss is above 1.3170.
Buy above 1.3180 and 1.3200 with target 1.3305 and 1.3340. Stop loss could be set below 1.3140
Our support and resistance levels for November 16
Resistance (1) 1.3228
Support (1) 1.3138
Resistance (2) 1.3259
Support (2) 1.3077
Resistance (3) 1.3319
Support (3) 1.3047