• DAILY UPDATES
  • MARKETS
    • Forex
    • CFDs
    • Spot Metals
    • Indices
  • ANALYSIS
    • Fundamental Analysis
    • Technical Analysis
  • ARTICLES
No Result
View All Result
FTD Limited
  • DAILY UPDATES
  • MARKETS
    • Forex
    • CFDs
    • Spot Metals
    • Indices
  • ANALYSIS
    • Fundamental Analysis
    • Technical Analysis
  • ARTICLES
No Result
View All Result
FTD Limited
No Result
View All Result

GBPUSD Spot and Options Markets Divergence is Accelerating

November 27, 2020
in DAILY UPDATES, Forex, Home, MARKETS, Technical Analysis
Reading Time: 3min read
A A
GBPUSD's technical analysis
0
SHARES
21
VIEWS
tweetpostshare
1 Week and 1 Month 25 Delta RR and GBPUSD
1 Week and 1 Month 25 Delta RR and GBPUSD

GBPUSD’s risk reversal levels for 1 week and 1 month is falling since early November while GBPUSD is up %1,88 since 12th of November. What is happening in the options market? Why is the price of the currency and options pricing going different ways?

RR’s are near September levels when GBPUSD is at 1.2834. There can be two reasons for this divergence:

  1. Beware! Brexit is Coming: EU and UK leadership had set up deadlines over deadlines for Brexit negotiations but never actually followed them. But now the actual Brexit deadline is at the door. Diplomats have limited time until this year’s end. There were some good news about compromises but it is still unclear a final deal can be reached. This is a big downside risk for GBPUSD and investors with long positions and businesses which can be affected negatively by this bad outcome may be hedging themselves in the options market.
  2. Beware the 1.3350-1.35 Resistance Zone:
GBPUSD Daily Chart | 1.3350 - 1.35 Zone
GBPUSD Daily Chart | 1.3350 – 1.35 Zone

Since May 2018, GBPUSD could not pass the 1.3350-1.35 zone to the upside. There were 7 major tries but all of them failed and the price reverse to the downside with an average of nearly 7 percent. It is highly possible that speculators positions themselves for another big fall from this zone.

Shorter-Term Key Technical Levels

GBPUSD Daily, 13 Day Moving Average
GBPUSD Daily, 13 Day Moving Average

The 13-day moving average may be a good support level for a weak signal and for a downside turn. Below this average, a move to 1.2980 can happen.

For upward moves, 1.35 will be key. If the price break and hold over that level, the medium-term bull may come to markets.

Medium to Long Term Key Technical Levels

GBPUSD Daily Chart | Nearly 3 Years
GBPUSD Daily Chart | Nearly 3 Years

Over 1.35 moves may at first target 1.3765 resistance. The second and longer-term target for GBPUSD may be the top of 2017-2018 which is at 1.4345. Of course for this to happen some good news may be needed for strong GBP and weaker USD.

For the downside, below the 1.2980 trend, 1.25 can be a good target which is also nearly %7 percent down from current levels.

Learn more about us

Tags: ForexGBPUSDOptions marketTechnical Analysis
TweetShareShareSend
Previous Post

Friday, November 27, 2020 Headlines

Next Post

Monday, November 30, 2020 Headlines

Related Posts

Biden announced $ 1.9 trillion stimulus package; USA blacklisted Chinese smartphone giant; Fed Chairman Powell's statement of interest
DAILY UPDATES

Friday, January 15, 2020 Headlines

EURGBP is Testing the Unbroken Support for the Sixth Time
MARKETS

EURGBP is Testing the Unbroken Support for the Sixth Time

NZDUSD is Closing into the Head and Shoulders Neckline
MARKETS

NZDUSD is Closing into the Head and Shoulders Neckline

President-elect Joe Biden on the right will reveal the Covid-19 stimulus package. Fed Chair Jerome Powell on the right expected to talk Princeton Economics Webinar.
DAILY UPDATES

The Markets Waiting for Biden and Powell

ECB President Lagarde: World oil prices fellWe will have a digital euro; US House of Representatives calls for Trump's dismissal;
DAILY UPDATES

Thursday, January 14, 2020 Headlines

An AUDNZD Strategy With a Success Rate of 75 Percent is Close to Give a New Signal
MARKETS

An AUDNZD Strategy With a Success Rate of 75 Percent is Close to Give a New Signal

Next Post
Trump's Defense Veto; Ant Group; UK's free trade deal with Turkey

Monday, November 30, 2020 Headlines

You might also like

Biden announced $ 1.9 trillion stimulus package; USA blacklisted Chinese smartphone giant; Fed Chairman Powell's statement of interest

Friday, January 15, 2020 Headlines

EURGBP is Testing the Unbroken Support for the Sixth Time

EURGBP is Testing the Unbroken Support for the Sixth Time

NZDUSD is Closing into the Head and Shoulders Neckline

NZDUSD is Closing into the Head and Shoulders Neckline

President-elect Joe Biden on the right will reveal the Covid-19 stimulus package. Fed Chair Jerome Powell on the right expected to talk Princeton Economics Webinar.

The Markets Waiting for Biden and Powell

ECB President Lagarde: World oil prices fellWe will have a digital euro; US House of Representatives calls for Trump's dismissal;

Thursday, January 14, 2020 Headlines

An AUDNZD Strategy With a Success Rate of 75 Percent is Close to Give a New Signal

An AUDNZD Strategy With a Success Rate of 75 Percent is Close to Give a New Signal

Recent Posts

  • Friday, January 15, 2020 Headlines
  • EURGBP is Testing the Unbroken Support for the Sixth Time
  • NZDUSD is Closing into the Head and Shoulders Neckline
  • The Markets Waiting for Biden and Powell
  • Thursday, January 14, 2020 Headlines
FTD Limited

The content of the site is presented for informational purposes only not to give any investment advice which mainly focuses on financial instruments such as Forex, Spot Metals, CFDs, and Indices.

MENU

  • DAILY UPDATES
  • MARKETS
  • ANALYSIS
  • ARTICLES

Latest Articles

  • Friday, January 15, 2020 Headlines
  • EURGBP is Testing the Unbroken Support for the Sixth Time
  • NZDUSD is Closing into the Head and Shoulders Neckline

Subscribe to our newsletter and get notified about the next update.

    © 2020 FTD Limited

    FTD Articles is a website prepared by FTD Limited's research team. FTD Limited is an online brokerage company offering products of Forex, Spot Metals and CFDs.

    The ideas and the information shown here have no responsibility of any of the trading decisions made by the investors or the visitors of this site. Therefore, under no circumstances will FTD Limited nor FTD Articles be held responsible or liable in any way for any claims, damages, losses, costs or liabilities resulting or arising directly or indirectly from the use of website content. We recommend that you seek advice if you have not involved with trading before in order to prevent potential risks that may arise.

    No Result
    View All Result
    • DAILY UPDATES
    • MARKETS
      • Forex
      • CFDs
      • Spot Metals
      • Indices
    • ANALYSIS
      • Fundamental Analysis
      • Technical Analysis
    • ARTICLES

    © 2020 FTD Limited

    FTD Articles is a website prepared by FTD Limited's research team. FTD Limited is an online brokerage company offering products of Forex, Spot Metals and CFDs.

    The ideas and the information shown here have no responsibility of any of the trading decisions made by the investors or the visitors of this site. Therefore, under no circumstances will FTD Limited nor FTD Articles be held responsible or liable in any way for any claims, damages, losses, costs or liabilities resulting or arising directly or indirectly from the use of website content. We recommend that you seek advice if you have not involved with trading before in order to prevent potential risks that may arise.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Create New Account!

    Fill the forms below to register

    *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.