Current trend

On Friday, GBP strengthened against USD after the release of ambiguous US statistics. A negative factor for USD was the slowdown in the growth of Nonfarm Payrolls: in September, the figure reached 134K against the forecast of 185K and last month’s figure of 270K. However, the increase in the unemployment rate was 3.7%, which was below the forecast of 3.8% and the previous figure of 3.9% and had a positive effect on the currency.

GBP was supported by the comments of the EU’s main Brexit negotiator Michelle Barnier, who announced that he was ready to offer a unique agreement that was more profitable for the UK than all previous ones.

Support and resistance

Today, as there is a lack of key macroeconomic releases, traders should pay attention to the technical indicators’ readings.

On the 4-hour chart, the upward movement is in the correction, the instrument is trading between the upper border and the middle line of Bollinger bands, the price range is widened, which indicates the possibility of resumption of growth. MACD histogram is in the positive area, the signal line is ready to cross the zero line upwards, after which a signal to open long positions will be received.

Resistance Levels: 1.3070, 1.3090, 1.3105, 1.3120, 1.3137.

Support levels: 1.3050, 1.3027, 1.3005, 1.2985.

Trading tips

Short positions can be opened from the level of 1.3050 with the target at 1.3000 and stop loss at 1.3080.

Long positions can be opened from the level of 1.3140 with the target at 1.3200 and stop loss at 1.3105.

Implementation period: 1–3 days.

Great Britan vs US Dollar

BuySellSpread
1.283441.28224120

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point1.3050
Take Profit1.3000
Stop Loss1.3080
Support levels1.2985, 1.3005, 1.3027, 1.3050, 1.3070, 1.3090, 1.3105, 1.3120, 1.3137

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3140
Take Profit1.3200
Stop Loss1.3105
Support levels1.2985, 1.3005, 1.3027, 1.3050, 1.3070, 1.3090, 1.3105, 1.3120, 1.3137
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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