2016-07-01 12:21:20

Technical data of the currency pair:

Previous closing: 1.3310; Daily range: 1.3262-1.3350;
Opening: 1.3310; 52- week range: 1.3833-1.5930;
Annual revenue: -4.46%; Change in % for the previous day: -0.71;

Analytical review:

  • Last week the GBP fell by 8% against the USD. At the moment, key support and resistance levels are: 1.3130 and 1.3535;
  • The Pound remains under pressure from the UK decision to leave the EU. The Bank of England announced that in the near future it can launch easing monetary policy in the country;
  • UK Office of National Statistics reported that the GDP growth in Q1 was 0.4%, as expected;
  • “Commitments of Traders’ shows the increase in the number of long positions by 10849 contracts up to 145194 contracts. 77510 contracts have been made for short positions.
  • Today’s news will include: index of business activity in the manufacturing sector in the UK and USA. These events can affect dynamics and volatility of the market.

Summary:

  • Pressure caused by Brexit, uncertainty about future monetary policy of the Bank of England, and volatility in the financial markets put strong pressure on the currency. According to “COT” large investors have increased the number of long positions.
  • Market movement is mixed. Therefore, it is advisable to enter the market from the key support and resistance levels.

Trading tips for the currency pair GBP/USD

Key levels:
Support levels: 1.4600 and 1.4450.
Resistance level: 1.4725.

Medium-term trading, H1
The currency is traded near resistance level of 1.3355. If the price maintains this level and in case of the respective (such as Price Action pattern), we recommend to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 1.3140, 1.3075 and 1.3010 with the use of trailing stops.

Medium-term trading, H1
Medium-term trading, H1

Short-term trading, М15
The currency is traded in the range of 1.3275-1.3345. It is recommended to enter the market after breaking out and testing of this zone. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stops.

Short-term trading, М15
Short-term trading, М15