2016-07-21 12:16:56

Technical data of the currency pair:

Previous closing: 1.3205;
Daily range: 1.3204-1.3276;
Opening: 1.3205;
52- week range: 1.2796-1.5820;
Annual revenue: -14.98%;
Change in % for the previous day: +0.76;

Analytical review:

  • Over the past two weeks the GBP rose by over 350 points after the decline caused by Brexit. Now, support level of the pair is 1.3130;
  • According to the data released by the British Office of National Statistics this week, consumer price index in June was 0.5% against the previous level of 0.35 and the forecast of 0.4%;
  • British Office of National Statistics also reported that the number of applications for unemployment benefits rose by 400 last month against the forecast of 3500;
  • “Commitments of Traders” shows the rise in long positions by 9992 contracts, up to 67558. 106073 contracts have been concluded for short positions;
  • Today, retail sale volume in the UK will become known. On Friday business activity index in the manufacturing sector. This data can affect market volatility and movement direction in the pair.

Summary:

  • Positive British statistics provide support to the Pound. Technical analysis also showed that upward correction can continue. According to “COT” large investors prefer long positions;
  • The BGP is likely to rise against the USD. It is advisable to open long positions.

Trading tips for the currency pair GBP/USD

Key levels:
Support levels: 1.3130 and 1.2850.
Resistance levels: 1.3475 and 1.3925.

Long-term trading, D1
Currently, the currency is traded at the support level of 1.3130. If the price maintains this level and in case of the respective (such as Price Action pattern), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed at the level of 1.3050. Take profit can be placed in parts at the levels of 1.3470, 1.3600 and 1.3750 with the use of trailing stops.

Long-term trading, D1
Long-term trading, D1


Short-term trading, М15
The currency is traded in the range of 1.3215-1.3265. It is recommended to enter the market after breaking out and testing of this zone. Positions shall be opened towards the signal line and the nearest support/resistance level. 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