Technical data of the currency pair:
Previous closing: 1.4305;
Daily range: 1.4246-1.4308;
52- week range: 1.4079-1.5930;
Annual revenue: -6.95%;
Change in % for the previous day: -0.91.
- Since the mid-February the British pound has been traded in the range of 1.4385-1.4560. During yesterday’s trading session the currency managed to breakout and consolidate below the local support level of 1.4385. The pound has lost over 120 points versus the USD.
- Important British statistics released yesterday showed that consumer price index rose by 0.3% as expected against the rise of 0.2% in December.
- Yesterday in the afternoon the Pound slightly strengthened amid the data released by the channel ITV that major respondents supported UK’s membership in EU.
- “Commitments of Traders” shows decline in long positions from 12833 to 213631 contracts. Short positions have increased by 3734 contracts.
- Some important news will be released this week, including the revised number of applications for unemployment benefits, minutes of FOMC meeting (today) and core index of consumer price (on Friday). This data can affect movement direction and volatility in the market.
- At yesterday’s trading session the currency managed to exit from the long-lasting flat. Despite positive UK data the pound fell by 120 points against the USD. According to “COT” large investors do not believe that the Pound will grow.
- In the near future the Pound can drop versus the USD. We recommend to enter the market with short positions.
Trading tips for the currency pair GBP/USD
Medium-term trading: currently, the currency has broken out and consolidated below the level of 1.4385. After testing resistance levels of 1.4385/1.4415 and in case of the respective confirmation (for example, a pattern Price Action), we recommend to open short positions. Risk per trade is less than 2% of capital. Stop-order can be placed slightly above the signal line. Take profit should be placed in parts at the levels 1.4320, 1.4250 and 1.4180 with the use of trailing stop.
Short-term trading: at the moment on the chart with timeframe 15М the currency has broken out the local support level of 1.4275. If resistance levels will maintain in the range of 1.4275-1.4310, we recommend to open short positions. Risk per trade is less than 2.5% of capital. Stop-order can be placed slightly above the signal line. Take profit should be placed in parts at the levels of 1.4240, 1.4210 and 1.4170 with the use of trailing stop.