Welcome to Thursday Nov 14th midday analysis -12.45 GMT
Euro moved higher and reached our projected target we mentioned in yesterday’s midday analysis of 1.4686. The pair traded in a small range just before the UK open and, after a retest of yesterday’s high of 1.4635 and an up sloping trendline it surged towards the 1.4700 level but so far it failed to stay above that. On the 1 hour time frame, we can see that a divergence has formed and while we are trading below 1.4700 it can shift today’s bias to the short side.
GbpUsd retraced a bit in yesterday’s US session but reversed and continued higher until it touched the 50.0 Fib Line of the 2.1140/2.0525 down move. The touch of the 50.0 Fib at 2.0840 also coincided with a fundamental news release from the BOE and that resulted in a sharp fall on GbpUsd, the pair losing almost 200 points in 1 hour and only stopped at 2.0640 which was the middle of Tuesday’s range.