Current trend

Yesterday, USD strengthened against GBP due to the negative UK economic data release. April Industrial Production fell by 0.8%, while the growth by 0.2% was expected. It forms a significant part of the final indicator of the British GDP, and its decline negatively affects the GBP rate. The pressure on the pair also had a decline in UK Manufacturing Production by 1.4% against the expectations of the growth by 0.3%.

On Tuesday, investors are waiting for the US inflation data releases. May CPI is expected to grow 2.5% to 2.8%, and the base CPI will increase from 2.1% to 2.2% and stay above the target level of 2.0% for the third month in a row. The implementation of forecasts can positively affect USD.

Support and resistance

On the 4-hour chart, the pair declines along the lower border of Bollinger bands. MACD is in the negative zone, gradually increasing its volumes, the signal line is going to cross the zero line downwards, after which a sell signal will be received.

Resistance levels: 1.3400, 1.3450, 1.3515, 1.3600.

Support levels: 1.3340, 1.3300, 1.3250, 1.3200.

Trading tips

Short positions can be opened from the current level with the target at 1.3250 and stop loss 1.3400.

Long positions can be opened from the level of 1.3410 with the target at 1.3470 and stop loss 1.3380.

Implementation period: 3–5 days.

Great Britan vs US Dollar

BuySellSpread
1.314951.3146926

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.3374
Take Profit1.3250
Stop Loss1.3400
Support levels1.3200, 1.3250, 1.3300, 1.3340, 1.3400, 1.3450, 1.3515, 1.3600

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3410
Take Profit1.3470
Stop Loss1.3380
Support levels1.3200, 1.3250, 1.3300, 1.3340, 1.3400, 1.3450, 1.3515, 1.3600
GBP/USD: general analysis

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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