Current trend

The dollar strengthened yesterday against the pound, despite the excess of the forecast for the number of Jobless Claims in the United States. In July, the indicator amounted to 217K, which is 2K higher than the forecast and 9K higher than the previous indicator, which shows the weakness of the labor market and is an unfavorable factor for USD.

Today, the market is waiting for the publication of annual data on US GDP for Q2 (14:30 GMT+2): according to preliminary forecasts, the index will grow and amount to 4.1%, high volatility is expected on the market.

Support and resistance

On H4 chart, there is a return of the downward dynamics after correction, and the instrument is traded between the lower and middle lines of Bollinger Bands. MACD histogram is near the zero level, and its volume is minimal, the signal line is reversing down.

Support levels: 1.3100, 1.3080, 1.3050, 1.3025, 1.3000.

Resistance levels: 1.3130, 1.3160, 1.3200, 1.3210.

Trading tips

Short positions may be opened from the current level with the target at 1.3050 and stop loss at 1.3140.

Long positions may be opened from the level of 1.3150 with the target at 1.3100 and stop loss at 1.3120.

Implementation time: 1-3 days.

Great Britan vs US Dollar

BuySellSpread
1.27181.2715426

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.3115
Take Profit1.3050
Stop Loss1.3140
Support levels1.3000, 1.3025, 1.3050, 1.3080, 1.3100, 1.3130, 1.3160, 1.3200, 1.3210

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3150
Take Profit1.3100
Stop Loss1.3120
Support levels1.3000, 1.3025, 1.3050, 1.3080, 1.3100, 1.3130, 1.3160, 1.3200, 1.3210
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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