GBP continues to decline against the dollar due to the significant growth of the latter.
USD remains in serious demand amid favorable data on the main sectors of the US economy. An additional catalyst for the fall were comments by FOMC representatives on the possibility of resuming tightening of monetary policy and raising rates in Q2. In addition, "the Briton" is declinig due to weak releases from the UK: negative data on the growth rates of the economy in Q1, the drop in mortgage lending and the weakening of major indices.
Today, an additional support to the US currency may be from releases for the labor market, trade balance, and production orders. At the end of the week, there will be information on changes in the number of people employed in non-agricultural sectors of the US economy and unemployment rate.
Support and resistance
Consensus forecasts for key macroeconomic data this week indicate an increase in indicators, and if confirmed, the dollar will strengthen. Technically, the pair fixed in a narrow downward channel and the probability of further reduction within the framework of this channel to the key support levels (1.3410, 1.3380) is high. In the future, an upward correction is possible, but then the pair will go down again. The current trend indicates a change of the long-term ascending channel to a downward one.
Technical indicators confirm the fall outlook: MACD indicates the preservation of the high volume of short positions, and Bollinger Bands are directed downwards.
Support levels: 1.3520, 1.3500, 1.3410, 1.3350, 1.3320, 1.3270, 1.3230, 1.3200.
Resistance levels: 1.3650, 1.3690, 1.3765, 1.3865, 1.3925, 1.4000, 1.4070.
Short positions may be opened from the current level with targets at 1.3410, 1.3350 (in the long term - 1.3150, 1.3000).
Great Britan vs US Dollar
|Take Profit||1.3410, 1.3350|
|Support levels||1.3200, 1.3230, 1.3270, 1.3320, 1.3350, 1.3410, 1.3500, 1.3520, 1.3650, 1.3690, 1.3765, 1.3865, 1.3925, 1.4000, 1.4070|
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