2012-07-10 11:32:00
1. Current trend of GBP/USD
After prolonged decline in the pair GBPUSD, slight correction has begun in the pair. The fall in the pair may continue in case of strong external factors. We can see that this week started with the flat in the pair; volumes are being accumulated for the further movement. The price is stuck in the narrow channel of 1.5470 - 1.5530. In general, movement dynamics has not changed. The British economy has not yet emerged from protracted recession and the pair GPB/USD is still under pressure. Expected development is as follows: significant fall in the pair GBP/USD will follow after the slight rise.
2. Important levels (Resistance and Support)
We can see, that “bearish” sentiment continues to dominate in the market. To date, the price is in the narrow channel and is waiting for the momentum to shift to either direction. Long-term correction might take place after the decline. In case the price exceeds the first resistance level of 1.5550, we may witness short-term upward movement to the next level of 1.5620. After that decline aimed at 1.5404 will continue. If the price remains below this level, short positions will aim at1.5322.
3. Best entry/exit points
Prospects of the flat deter traders from making decisions. More experienced traders try not to take risk and to “stay out” from the flat in the pair GBP/USD. However, taking into account today’s situation, it is advised to set limits for sale in around the key resistance level of 1.5550 and stop losses below the initial support level of 1.5460.
4. Supporting facts
The pair GBP/USD has grown at the end of the trading day on Monday, despite the lack of economic releases. Pessimistic comments of MPC representative, Mr. Posen, about prospects of the British economy and bank system have been ignored by the market.
Most likely, movement of GBP/USD will be affected by the market sentiment; however economic data should be also considered. The data on industrial output and trade balance is scheduled for the release in the near future. Taking into account the rise in PMI in the manufacturing industry, we can expect positive momentum and short-term rise in the pair up to 1.5550. However sharp fall in the British currency against the USD may take place in the future.
After prolonged decline in the pair GBPUSD, slight correction has begun in the pair. The fall in the pair may continue in case of strong external factors. We can see that this week started with the flat in the pair; volumes are being accumulated for the further movement. The price is stuck in the narrow channel of 1.5470 - 1.5530. In general, movement dynamics has not changed. The British economy has not yet emerged from protracted recession and the pair GPB/USD is still under pressure. Expected development is as follows: significant fall in the pair GBP/USD will follow after the slight rise.
2. Important levels (Resistance and Support)
We can see, that “bearish” sentiment continues to dominate in the market. To date, the price is in the narrow channel and is waiting for the momentum to shift to either direction. Long-term correction might take place after the decline. In case the price exceeds the first resistance level of 1.5550, we may witness short-term upward movement to the next level of 1.5620. After that decline aimed at 1.5404 will continue. If the price remains below this level, short positions will aim at1.5322.
3. Best entry/exit points
Prospects of the flat deter traders from making decisions. More experienced traders try not to take risk and to “stay out” from the flat in the pair GBP/USD. However, taking into account today’s situation, it is advised to set limits for sale in around the key resistance level of 1.5550 and stop losses below the initial support level of 1.5460.
4. Supporting facts
The pair GBP/USD has grown at the end of the trading day on Monday, despite the lack of economic releases. Pessimistic comments of MPC representative, Mr. Posen, about prospects of the British economy and bank system have been ignored by the market.
Most likely, movement of GBP/USD will be affected by the market sentiment; however economic data should be also considered. The data on industrial output and trade balance is scheduled for the release in the near future. Taking into account the rise in PMI in the manufacturing industry, we can expect positive momentum and short-term rise in the pair up to 1.5550. However sharp fall in the British currency against the USD may take place in the future.