England and Europe, will there be a Brexit negotiation agreement!? ~November 22 pound-buying strategy~

◎ Strategy and Position

Pound Buy StrategyPart 1

EUR/GBP New SellEntry at “0.8900”, Stop at “0.9000”, Take profit at “0.8800” or “0.8700”

EUR/GBP Weekly Chart

EUR/GBP Daily Chart

EUR/GBP 4-hour Chart

Looking at the weekly and daily charts of EUR/GBP, it seems to have been moving in a long-range range for a long time.

In this environment, a crucial moment for the pound is approaching as an extraordinary EU summit is planned. In the first place, the extraordinary EU summit was scheduled for mid-November, but it was canceled because there seemed to be no prospect of Brexit agreement after the October EU summit.

Yesterday, Prime Minister May and EU Commission President Juncker held talks on Brexit, but no agreement was reached.

However... there is information that another meeting is planned on the 24th!

An extraordinary EU summit is scheduled for the 25th. However, there are statements that it might not be necessary if no agreement can be reached!?

There are expectations that this decision will appear in the headlines today.

If the extraordinary EU summit does not take place, it would be a different story, but as long as it is moving forward with a plan to hold it, it is considered bullish for the pound.

On the other hand, the euro lacks bullish factors as the Italian budget issue remains delayed. So it may be a good pair to trade as a carry under these conditions.

Related article on the Italian budget
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Italy vs European Commission, explaining the honest viewpoints on the budget!

Pound Buy StrategyPart 2

GBP/JPY New BuyEntry at “145.00”, Stop at “144.00” or “142.00”, Take profit at “149.00” or “1 your target”

GBP/JPY Daily Chart

GBP/JPY 4-hour Chart

The factors for buying pounds are as stated above.

The yen continues to pursue easing measures. While risk-off tends to drive yen higher, risk-on could lead to yen selling, so it may be reasonable to consider it as a pair currency.

Pound Buy StrategyPart 3

GBP/USD New BuyEntry at “1.2800”, Stop at “1.2650”, Take profit at “1.3100” or “1.3250”

GBP/USD Daily Chart

GBP/USD 4-hour Chart

The factors for buying pounds are as stated above.

The dollar’s selling pressure factors include concerns about a stronger dollar and a reduction in the number of rate hikes expected next year.

However, personally I think there will be many dollar-buying factors for the rest of the year.

For dollar-buying factors, please see below.
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November 14 Record Room – Stocks, Interest Rates, and Key Officials’ Remarks