Current trend

USD strengthened against GBP on Wednesday due to the absence of significant macroeconomic releases. The focus of investors' attention was on the trade war between the US and China.

GBP remains under pressure of uncertainty in the outcome of Brexit. This week, Liam Fox, the Secretary of State for International Trade, estimated the probability of the UK's withdrawal from the EU without a deal as 60%. According to the media, 75% of British companies are pessimistic about Brexit.

Investors are waiting for Friday when there will be data on GDP and industrial production of the UK. GDP probably will not change much but industrial production is expected to grow, which can support the pound.

The main event of today will be the release of data on Initial Jobless Claims in the US (14:30 GMT+2), moderate volatility is expected in the market.

Support and resistance

On the H4 chart the pair is decreasing along the lower line of Bollinger Bands. MACD histogram is in the negative zone keeping a signal for opening short positions.

Resistance levels: 1.2880, 1.2910, 1.2930, 1.2950, 1.2970, 1.3000.

Support levels: 1.2850, 1.2820, 1.2800.

Trading tips

Short positions may be opened from the current level with target at 1.2800 and stop loss at 1.2910.

Buy orders may be opened from the level of 1.2930 with target at 1.3000 and stop loss at 1.2880.

Implementation period: 1-3 days.

Great Britan vs US Dollar



TimeframeDay's Range
Entry Point1.2854
Take Profit1.2800
Stop Loss1.2910
Support levels1.2800, 1.2820, 1.2850, 1.2880, 1.2910, 1.2930, 1.2950, 1.2970, 1.3000

Alternative scenario

RecommendationsBUY STOP
Entry Point1.2930
Take Profit1.3000
Stop Loss1.2880
Support levels1.2800, 1.2820, 1.2850, 1.2880, 1.2910, 1.2930, 1.2950, 1.2970, 1.3000
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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