Current trend

Somewhat negative data on the UK GDP for the second quarter of the year was released today, but the pair had almost no reaction to it.

Weak statistics for main sectors of the economy of the UK and a slowdown in its growth rates put the British Pound under pressure. At the same time, demand for the US Dollar is growing. The Dollar Index is moving upwards again, thus pointing out to a healthy state of the US economy.

In the end of the week, attention should be paid to data on the US labour market, Fed’s Yellen speech, as well as Markit Manufacturing and Construction PMI’s in the UK. 

Support and resistance

The pair is trading within a descending channel and falling towards the level of 1.5000 (the lower border of the descending channel and the key support level), from where it is going to rebound and enter an upward correction towards the levels of 1.5400, 1.5300.On the other hand, if the price breaks down the level of 1.5000, the pair continues falling towards 1.4750.

Support levels: 1.5100, 1.5030, 1.5000, 1.4910, 1.4830, 1.4750.

Resistance levels: 1.5250, 1.5300, 1.5335, 1.5400, 1.5440, 1.5485, 1.5610, 1.5750, 1.5815.

Trading tips

Pending buy orders can be placed above the level of 1.5030 with targets at 1.5300, 1.5400 and stop-loss at 1.4950.

GBP/USD: upward correction is expected

 

 

 

 

 

 

 

 

 

 

 

 

 




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