2016-08-03 13:25:49

Technical data of the currency pair:

Previous closing: 1.3356;
Daily range: 1.3294-1.3357;
Opening: 1.3356;
52- week range: 1.2796-1.5820;
Annual revenue: -14.50%;
Change in % for the previous day: +1.36.

Analytical review:

  • Last week the currency pair GBP/USD maintained support level of 3075, rising by over 250 points in the upward correction. The rise in the GBP continues yesterday. The currency rose by 1.3%;
  • Yesterday’s British statistics showed that according to CIPS business activity index in the construction sector was 45.9 in July against the previous level of 46.0. However, the index was above market expectations of 43.8;
  • “Commitments of Traders” shows ambiguous picture. Large investors have increased the number of long positions by 991 contracts. Short positions have also grown by 7121 contracts;
  • Technical analysis also shows that correction in the pair GBP/USD may continue. The price has broken up and consolidated above resistance level of 1.3290. MACD histogram is in the positive zone and continues to rise (timeframe Н4);
  • Interest rate decision by the Bank of England will be known on Thursday. US data on the non-farm payrolls will be released on Friday. This data can affect market volatility and movement direction in the pair.


  • Positive British statistics supports demand for the Pound. Technical analysis also shows that upward correction can continue. According to “COT” large investors do not have general opinion about the Pound;
  • In the near future the GBP will rise against the USD. It is advisable to open long positions.

Trading tips for the currency pair GBP/USD

Key levels:
Support levels: 1.3290 and 1.3170.
Resistance levels: 1.3365 and 1.3475.

Long-term trading, D1
Prior to the interest rate decision by the Bank of England changed in the movement of the Pound are not expected. It is recommended to refrain from making long-term transaction on the pair GBP/USD. It is preferable to enter the market after the announcement of the Bank’s decision on Thursday and re-testing of the key support and resistance levels and in case of the respective (such as Price Action pattern).

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

Short-term trading, М15
The currency is traded in the demand zone of 1.3285-1.3305. If the price maintains this zone, it will be advisable to open long positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 1.3360, 1.3390 and 1.3430 with the use of trailing stops.

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