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Bitcoin dives after test of record high

GBP/USD – Daily Candlesticks
Source: GKFX / MT4 (November 27, 2020)

GBP/USD is in an uptrend supported by both short and long term rising trendlines. The pair is now facing resistance from 1.34 to the September peak at 1.348. A breakout would be a significant bullish development. A breakdown below the short term rising trendline could result in a re-test of the long term trendline.
 

TAKEAWAYS


•    Bitcoin dives over 16% from Wednesday peak in test of record high
•    Amazon stock in focus on Black Friday shopping holiday
•    UK to speed up AstraZeneca vaccine approval, US raises doubts
•    Oil price snaps 5-day win streak
•    Wall Street reopens after Thanksgiving
•    DAY AHEAD: Black Friday, Eurozone Consumer confidence
 

GURU WISDOM


“Goodness is the only investment that never fails.” Henry David Thoreau
 

MARKETS


*Daily closing price
↘ EUR/USD    1.1913        (0.00%) 
↘ GBP/USD    1.3355        (-0.20%)
↘ USD/JPY    104.25        (-0.19%)
↗ S&P 500    3629.65    UNCH.
↗ Hang Seng    26,819.45    (+0.56%)
↗ Gold     (spot)    1869.60    (+0.29%)
↘ Oil (Brent)    47.75        (-1.77%)
↘ Bitcoin    18401        (-8.07%)
 

NEWS


Bitcoin ‘correction’


The Bitcoin price has seen a large correction of its furious bullish run. The double digit declines on Thursday came following a test of record highs. The price reaches $19,510. The all-time high is generally recognised as $19,783 though different cryptocurrency exchanges recorded different prices in December 2017 and some had it as over $20,000. 

There was some news to attribute to the selling emanating from crypto exchange Coinbase. The exchange has ended all margin trading as part of a CFTC ruling, which will limit customer’s abilities to placed leveraged bets on Cryptocurrencies. Coinbase CEO Brian Armstrong was also on Twitter criticising the rumoured plans by the US Treasury to attempt to track cryptocurrency owners via ‘self-hosted wallet’s that would force exchanges like Coinbase to impose KYC restrictions on crypto owners before allowing a transfer. Lost anonymity could dissuade some crypto holders from trading as actively.
 

Oil / Oxford vaccine


The price of oil was overdue a pullback after a +10% 5-day winning streak. The pullback came as nerves crept in ahead of next week’s OPEC meeting. There are also concerns about the robustness of vaccine trial results from AstraZeneca, which had earlier said its covid-19 vaccine could be up to 90% effective. US experts called into question the 90% number which came from a lower risk group of 2,741 people, while a group with 8,895 people had only a 62% efficacy. AstraZeneca has pushed back against the criticism but nonetheless its shares are down 6% this week.
 

DAY AHEAD 


*Times in GMT
10:00 – Eurozone - Consumer Confidence (Nov) - -17.6 Exp vs. -17.6 Prev
 

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