Current trend

USD strengthened against GBP on Friday.

Investors were focused on the head of the Bank of England, Mark Carney who gave an interview to the BBC on Friday and called Brexit without a deal extremely undesirable. The official noted that the likelihood of such an outcome is not high, but it still exists, and in this case the UK is facing a decline in trade and economic activity and rising prices. Additional pressure on GBP on Friday was provided by weak data on Services PMI, which fell from 55.1 to 53.5 points, lower than expected.

The release of ambiguous data from the US labor market did not support the pair. Unemployment rate, as expected, fell from 4.0% to 3.9%. Average Hourly Earnings increased by 0.3% MoM and remained at the same level of 2.7% YoY. Nonfarm Payrolls fell more than the market expected: from 248K to 157K. The decline in Markit and ISM Services PMIs put a short-term pressure on USD, after which the pair returned to the decrease.

Support and resistance

On the H4 chart the instrument is trading between the lower and center lines of Bollinger Bands. MACD histogram is in the negative zone, the signal line is crossing the zero level and the body of the histogram from above, forming a signal to open short positions.

Resistance levels: 1.3000, 1.3030, 1.3050, 1.3080, 1.3100.

Support levels: 1.2970, 1.2950, 1.2900.

Trading tips

Buy orders may be opened from 1.3050 with the target at 1.3100 and stop loss at 1.3120.

Short positions may be opened from the current level with target at 1.2950 and stop loss at 1.3030.

Implementation period: 1-3 days.

Great Britan vs US Dollar

BuySellSpread
1.30691.3062664

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point1.3050
Take Profit1.3100
Stop Loss1.3120
Support levels1.2900, 1.2950, 1.2970, 1.3000, 1.3030, 1.3050, 1.3080, 1.3100

Alternative scenario

RecommendationsSELL
Entry Point1.2961
Take Profit1.2950
Stop Loss1.3030
Support levels1.2900, 1.2950, 1.2970, 1.3000, 1.3030, 1.3050, 1.3080, 1.3100
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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