Current dynamics

The British currency remains one of the weakest in the current quarter and is currently trading at its lowest level of this year.

The fall of the GBP was mostly caused by the uncertainty around Brexit. It remains less than 8 months until the UK's withdrawal from the EU, however, the British government still haven’t reach the agreement with Brussels. Moreover, the British authorities are considering the Brexit without an agreement on further cooperation with the EU.

The impact of British statistics on the pair remains small and short-term, which confirms the market reaction to the publication of strong macroeconomic reports of the United Kingdom on Friday. Traders continue to hold short positions on GBP/USD, which exerts additional pressure on the pair.

Today, there are no important macroeconomic statistics, so a further moderate decline in the pair is likely. Tomorrow at 11:30 (GMT+2) the statistics on the British labor market will be published.

Support and resistance

On the 4-hour chart, the instrument is at the lower border of "Bollinger Bands". The indicator is pointing down, and the price range has expanded, which is the basis for further decline. The MACD histogram has reached the minima in the negative zone, holding a strong sell signal. Stochastics left the oversold area, forming a buy signal.

Support levels: 1.2615, 1.2707.

Resistance levels: 1.2783, 1.2845, 1.2942, 1.2988, 1.3044, 1.3112, 1.3191.

Trading tips

Short positions can be opened at the current price with a target of 1.2700 and a stop loss at 1.2775. Term of realization: 1-2 days.

Long positions will be relevant above the level of 1.2785 with a target of 1.2840 and a stop loss at 1.2755. Term of realization: 1-2 days.

Great Britan vs US Dollar

BuySellSpread
1.315221.3149626

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.2762
Take Profit1.2700
Stop Loss1.2775
Support levels1.2615, 1.2707, 1.2783, 1.2845, 1.2942, 1.2988, 1.3044, 1.3112, 1.3191

Alternative scenario

RecommendationsBUY STOP
Entry Point1.2790
Take Profit1.2840
Stop Loss1.2755
Support levels1.2615, 1.2707, 1.2783, 1.2845, 1.2942, 1.2988, 1.3044, 1.3112, 1.3191
GBP/USD: general analysis

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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