Current trend
USD is growing against most major currencies due to a growing UK-China trade war. At the same time, pressure on GBP is exerted by the lack of certainty in the issue of Britain's withdrawal from the EU.
According to the statement of the head of the Conservative Party of England, negotiations on Brexit again reached a deadlock, the way out of which will not be found until the end of this year. The report disappointed investors, as a week ago British Prime Minister Theresa May assured the public that there were no obstacles to the implementation of the "soft" Brexit.
This week the key event for the trading instrument is the Bank of England meeting on monetary policy, which will be held this Thursday.
Today at 15:30 (GMT+2) market participants will follow the speech of Fed Chairman Jerome Powell. Tomorrow at 13:00 (GMT+2), the Bank of England will announce its decision on the interest rate. Given the economic realities, both these events will reduce the pair further.
Support and resistance
On the H4 chart the instrument is correcting in the lower part of Bollinger Bands. The indicator is directed downwards, and the price range is expanding, which indicates the further decline of the pair. MACD histogram is in the negative zone keeping a sell signal. Stochastic has left the oversold zone and formed a buy signal.
Support levels: 1.3136, 1.3064, 1.2986.
Resistance levels: 1.3190, 1.3227, 1.3254, 1.3317, 1.3360, 1.3438.
Trading tips
Short positions may be opened from the current level with targets at 1.3060, 1.3000 and stop-loss at 1.3195. Implementation period: 1-2 days.
Long positions may be opened above the level of 1.3335 with target at 1.3520 and stop-loss at 1.3263. Implementation period: 1-3 days.
Great Britan vs US Dollar
| Buy | Sell | Spread |
| 1.29303 | 1.29278 | 25 |
Scenario
| Timeframe | Day's Range |
| Recommendations | SELL |
| Entry Point | 1.3158 |
| Take Profit | 1.3060, 1.3000 |
| Stop Loss | 1.3195 |
| Support levels | 1.2986, 1.3064, 1.3136, 1.3190, 1.3227, 1.3254, 1.3317, 1.3360, 1.3438 |
Alternative scenario
| Recommendations | BUY STOP |
| Entry Point | 1.3340 |
| Take Profit | 1.3520 |
| Stop Loss | 1.3263 |
| Support levels | 1.2986, 1.3064, 1.3136, 1.3190, 1.3227, 1.3254, 1.3317, 1.3360, 1.3438 |
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