Current trend

Since mid-August, the GBP/USD pair was corrected upwards by more than 500 points but then began to decline again. In late September, the instrument, being under pressure due to negative data on the UK economic growth rate and major indices, as well as the increase in demand for USD, lost 350 points in a few days. The downward momentum is now maintaining.

At the end of the current trading week, special attention should be paid to data on the US labor market: the Unemployment Rate and Nonfarm Payrolls.

Support and resistance

In the short term, the pair will continue to decline to the levels of 1.2975, 1.2910, 1.2860. In the future, a reverse to wide sideways consolidation is forecasted, and then a renewal of local lows at 1.2745, 1.2700, 1.2640.

Technical indicators confirm the forecast: volumes of short MACD positions are growing, Bollinger bands are directed downwards.

Resistance levels: 1.3000, 1.3060, 1.3110, 1.3150, 1.3180, 1.3225, 1.3270, 1.3295.

The levels of support: 1.2975, 1.2910, 1.2860, 1.2745, 1.2700, 1.2640.

Trading tips

It is relevant to open short positions from the current level and open pending short positions from the levels of 1.3000, 1.2975 with the targets at 1.2745, 1.2700, 1.2640 and stop loss at 1.3040.

Great Britan vs US Dollar

BuySellSpread
1.283441.28224120

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.2960
Take Profit1.2745, 1.2700, 1.2640
Stop Loss1.3040
Support levels1.2640, 1.2700, 1.2745, 1.2860, 1.2910, 1.2975, 1.3000, 1.3060, 1.3110, 1.3150, 1.3180, 1.3225, 1.3270, 1.3295

Alternative scenario

RecommendationsSELL LIMIT
Entry Point1.3000, 1.2975
Take Profit1.2745, 1.2700, 1.2640
Stop Loss1.3040
Support levels1.2640, 1.2700, 1.2745, 1.2860, 1.2910, 1.2975, 1.3000, 1.3060, 1.3110, 1.3150, 1.3180, 1.3225, 1.3270, 1.3295
GBP/USD: the pair is falling

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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