GBP/USD

Technical data of the currency pair:

Previous closing: 1.4405;
Daily range: 1.4176-1.4308;
Opening: 1.4278;
52- week range: 1.4079-1.5930;
Annual revenue: -7.17%;
Change in % for the previous day: +0.48.


Analytical review:

  • 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).

Summary:

  • 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.


Analytical review of the currency pair GBP/USD

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.


Analytical review of the currency pair GBP/USD




Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.



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