Technical data of the currency pair:
Previous closing: 1.4405;
Daily range: 1.4176-1.4308;
52- week range: 1.4079-1.5930;
Annual revenue: -7.17%;
Change in % for the previous day: +0.48.
- Last week the Pound fell by 130 points versus the USD. Today, the currency pair opened with the “gap down”» (over 120 points.
- The currency quietly reacted to the US macro-economic statistics, showing that producer price index in the US rose by 0.1%; number of initial applications for unemployment benefits fell by 2.6% to 262000 over a week.
- Last week important UK data became known. According to Office of National Statistics (ONS), retail sales rose by 2.3%, which is above analysts’ expectations.
- Market participant are focused on the upcoming 2-day EU summit where new conditions for the UK membership in the Union will be discussed.
- The news of this week, which can affect movement and volatility in the pair is as follows: speech of the head of the Bank of England; sales in the US secondary housing market (Tuesday); UK GDP (Thursday).
- Despite positive UK macro-economic statistics, the currency failed to maintain support level of 1.4275. Investors’ attention is focused on the EU summit where conditions of UK membership in the Union will be discussed.
- In the near future volatility in the pair GBP/USD will be high. Positions can be opened from the key support and resistance levels.
- Таким образом, в ближайшее время мы ожидаем повышения котировок компании.
Trading tips for the currency pair GBP/USD
Medium-term trading: the currency has consolidated below support level of 1.4275. After testing and maintenance of the price in the range of 1.4235-1.4275 and in case of the respective confirmation (for example, a pattern Price Action), we recommend to open short positions. Risk per trade is not more than 2.5% of capital. Stop order can be placed above/below the signal line. Take profit should be placed in parts of 50%, 30% and 20% with the use of trailing stop.
Short-term trading: currently, the pair is traded in the range of 1.4175-1.4225. After breaking down and testing of theses levels we recommend to open positions near the signal line and the nearest support/resistance levels. Price Action), we recommend to open short positions. Risk per trade is not more than 2% of capital. Stop order can be placed above the signal line. Take profit should be placed in parts at the levels of 1.4150, 1.4100 and 1.4050with the use of trailing stop.