Current trend

GBP strengthened against USD on trading on Friday.

As there is lack of UK key releases, GBP is still supported by Bank of England Minutes release, which reflected the growth of the number of regulator experts wishing to raise the key interest rate.

USD is supported by Markit PMI Composite growth to 56.0 points, as well as the growth of Markit Services PMI to 56.5 points.

Today, traders should focus on the release of data on new home sales in the US (14:00 GMT+2). The market is expected to be moderately volatile.

Support and resistance

On the H4 chart the instrument is trading between the upper and middle lines of Bollinger Bands. MACD histogram is in the positive zone and has minimum volume, the signal line is about to cross the zero line from below, which will be a signal to open long positions.

Support levels: 1.3250, 1.3200, 1.3160, 1.3130, 1.3100.

Resistance levels: 1.3300, 1.3340, 1.3400, 1.3450, 1.3470.

Trading tips

Short positions may be opened from the level of 1.3200 with target at 1.3100 and stop-loss at 1.3250.

Long positions may be opened from the level of 1.3340 with targets at 1.3450 and stop-loss at 1.3300.

Implementation period: 3-5 days.

Great Britan vs US Dollar

BuySellSpread
1.278891.2785237

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point1.3200
Take Profit1.3100
Stop Loss1.3250
Support levels1.3100, 1.3130, 1.3160, 1.3200, 1.3250, 1.3300, 1.3340, 1.3400, 1.3450, 1.3470

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3340
Take Profit1.3450
Stop Loss1.3300
Support levels1.3100, 1.3130, 1.3160, 1.3200, 1.3250, 1.3300, 1.3340, 1.3400, 1.3450, 1.3470
GBP/USD: general review

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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