Current trend

GBP is strengthening against USD due to the approval of the British withdrawal from the EU agreement. At the Brexit summit on Sunday, a part of the controversial issues, such as the status of Gibraltar and the Irish border, was settled. British Prime Minister Theresa May is optimistic, despite the fact that the draft agreement has yet to be passed through parliament, and approval will require a share of the votes of the opposition Labor Party.

Today, the pair may be influenced by the speech of the Bank of England’s governor Mark Carney at 20:30 (GMT+2), which will assess the current economic situation in the UK. High volatility is expected on the market.

Support and resistance

On the 4-hour chart, the instrument broke the middle line of Bollinger bands upwards. MACD histogram is around ​​the zero line, its volumes are minimal, the signal line moves horizontally.

Resistance levels: 1.2855, 1.2890, 1.2926.

Support levels: 1.2819, 1.2794, 1.2763, 1.2724, 1.2695.

Trading tips

Long positions can be opened from the current level with the target at 1.2926 and stop loss 1.2808.

Short positions can be opened from the level of 1.2794 with the target at 1.2724 and stop loss 1.2830.

Implementation period: 1–3 days.

Great Britan vs US Dollar

BuySellSpread
1.26451.2633120

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point1.2837
Take Profit1.2926
Stop Loss1.2808
Support levels1.2695, 1.2724, 1.2763, 1.2794, 1.2819, 1.2855, 1.2890, 1.2926

Alternative scenario

RecommendationsSELL STOP
Entry Point1.2794
Take Profit1.2724
Stop Loss1.2830
Support levels1.2695, 1.2724, 1.2763, 1.2794, 1.2819, 1.2855, 1.2890, 1.2926
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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