Technical data of the currency pair:

Previous closing: 1.4261; Daily range: 1.4226-1.4280;
Opening: 1.4261; 52- week range: 1.3833-1.5930;
Annual revenue: -2.77%; Change in % for the previous day: +0.20;

Analytical review:

  • In the last three trading session the Pound has grown by 250 points against the USD. During yesterday’s session rally in the Pound was halted at the resistance level of 1.4325;
  • British statistics released yesterday showed that consumer price index rose by 0.2% to 0.5% in March against the forecast of 0.4%;
  • IMF had downgrade forecast of global economic growth by 0.2% to 3.2%, which caused significant rise in demand for safe haven assets;
  • “Commitments of Traders” shows ambiguous picture. Large speculators have cut the number of long positions by 2439 contracts. Short positions have been also reduced by 9601contracts;
  • US producer price index (PPI) and interest rate decision by the Bank of England will become known on Thursday. This data may affect market volatility and movement direction in the pair.

 

Summary:

  • Deterioration in market sentiments in the EU, ambiguous situation in the world economy and increased volatility put strong pressure on the British currency.
  • According to “COT” large investors have varied opinions about the Pound.
  • Market movement is mixed. It is recommended to enter the market from the key support/resistance level.

 

Trading tips for the currency pair GBP/USD

Medium-term trading: At the moment the currency is traded in the demand zone of 1.4170-1.4205. After breaking out and testing of this zone and in case of the respective confirmation (such as Price Action patter), we recommend to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 1.4115, 1.4060 and 1.4015 with the use of trailing stops.

Analytical review of the currency pair GBP/USD

Short-term trading: on the chart with the timeframe 15M the currency is traded between the local support and resistance levels of 1.4205 - 1.4255. If the price breaks out and consolidates below support level of 1.4205, it will be advisable to open short positions. Risk per trade is not more than 3% of capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 1.4160, 1.4120 and 1.4075 with the use of trailing stop.

Analytical review of the currency pair GBP/USD




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