GBP/USD Under Pressure Amid Quiet Holiday Market
InstaForex Group | Nov 26, 2021 05:15AM ET
While decent Americans were having Thanksgiving dinner and feasting on turkey, global financial markets came to a standstill.
The lion’s share of the capital rotating in markets worldwide is controlled by investment banks and pension funds that are headquartered in the US by odd coincidence, in particular, in one famous financial hub called New York.
Therefore, when the New World has a day off to celebrate a national holiday, it means that the whole financial community from Japan to Alaska also has a day off.
Because of this custom in financial markets, international statistics agencies, government departments, and central banks avoid releasing significant data on these dates for the simple reason that nobody will take notice of record agricultural crops or steel output.
The predictable thin market occurs on Wall Street during bank holidays. This is what we saw yesterday. This is what is happening today because American markets are closing earlier than usual.
Brokerage firms, individual traders, and institutional investors prefer to stay away from the market, looking forward to a weekend. For this reason, the economic calendar is completely empty.
GBP/USD broke the level of 1.3350 with a retracement to follow. This level is seen as resistance. As a result, traders increased the number of short positions towards 1.3300.
According to the 4-hour and daily charts, the RSI technical instrument has been moving between 30 and 50 marks for five days straight. This signals strong selling interest among market participants.
In the daily chart, GBP/USD is moving in steps that look like a sequence of impulses and corrections. This particular movement signals a further downtrend in the medium term.
h2 Outlook and trading tips/h2We suppose that the currency pair is still trading in the downtrend. If the price settles below 1.3290, this will convince traders to open more short positions. This will open the way for GBP/USD towards 1.3150.
Complex indicator analysis suggests selling GBP/USD intraday, in the short and medium terms, bearing in mind the ongoing bearish cycle.
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