At the end of September, the British currency against the US dollar changed the upward trend to a wide lateral consolidation.
The pair reached a key resistance level of 1.3300, but, having failed to overcome it, it rapidly went down, losing more than 300 points in a few days. Then the instrument went back to growth, almost returning to the maxima last week. However, in the middle of the week, the pair reversed down from strong resistance levels. This fall was caused by negative data on inflation and major indices in the UK. Additional pressure was exerted by the growth in demand for the dollar amid strong releases on the US labor market.
Support and resistance
Technically, the instrument is traded within a wide narrowing lateral consolidation. There's a high probability of growth from the current level with the target at 1.3215. One should not underestimate the negative releases from the UK: in the case of breaking down of a strong support level of 1.3000, an alternative scenario would be a further decline in the pair.
Technical indicators on D1 chart and above still give a buy signal: MACD indicates the preservation of the high volume of short positions, Bollinger Bands are directed upwards.
Support levels: 1.3030, 1.3000, 1.2975, 1.2910, 1.2885, 1.2860, 1.2825, 1.2745, 1.2700.
Resistance levels: 1.3060, 1.3110, 1.3130, 1.3150, 1.3215, 1.3300.
In this situation, long positions may be opened from the current level with the target at 1.3215 and stop loss at 1.2960.
Great Britan vs US Dollar
|Support levels||1.2700, 1.2745, 1.2825, 1.2860, 1.2885, 1.2910, 1.2975, 1.3000,|
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