Technical data of the currency pair:

Previous closing: 1.4496;
Daily range: 1.4494-1.4529;
Opening: 1.4496;
52- week range: 1.3833-1.5930;
Annual revenue: -4.49%;
Change in % for the previous day: -0.20;

Analytical review:


During yesterday’s trading session:

  • During yesterday’s trading session:
  • In the last two sessions the Pound has dropped by over 150 points against the USD. During yesterday’s trading session the price of the currency fell by 0.20%;
  • Yesterday important British statistics was released, which showed that Chartered Institute of Purchasing and Supply business activity index in the construction sector fell to 52.0 against the previous value of 54.2 and the forecast of 54.0;
  • According to US Department of Commerce trade balance deficit in the USA fell by 6.56 billion USD to 40.4 billion USD against the forecast of 41.50 billion USD;
  • “Commitments of Traders” show ambiguous picture. Large speculators have increased the number of long positions by 2773 contracts. The number of short positions has been increased by 4987 contracts.
  • US statistics scheduled for release this week can have significant impact on the currency. On Friday 6 May non-farm payrolls will be released.

Summary:

  • Positive US macro-economic data, poor UK statistics and high volatility in the financial markets put strong pressure on the British currency.
  • According to “COT” large investors do not have common opinion about the Pound.
  • It is likely that the GBP will weaken against the USD in the near future. It is recommended to open short positions.

Trading tips for the currency pair GBP/USD

Key levels:
Support levels: 1.4415 and 1.4310.
Resistance levels: 1.4520, 1.4590 and 1.4660.

Long-term trading, D1:
Prior to the release of non-farm payrolls on Friday 6 May, we do not expect changes in the movement of the Pound. At the moment it is recommended to refrain from opening long-term transactions on the currency pair GBP/USD. It is advisable to enter the market after the publication of statistics on Friday and retesting of the key support and resistance levels and in case of the respective confirmation (such as Price Action pattern).

Analytical review of the currency pair GBP/USD of 05.05.2016.
Long-term trading, D1:

Medium-term trading, H1:
The currency is traded near the local resistance level of 1.4520. If the price maintains this level and in case of the respective confirmation (such as Price Action pattern), 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 1.4425, 1.4360 and 1.4315 with the use of trailing stops.

Analytical review of the currency pair GBP/USD of 05.05.2016.
Medium-term trading, H1:




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