Technical data of the currency pair:

Previous closing: 1.4671;
Daily range: 1.4640-1.4739;
Opening: 1.4671;
52- week range: 1.3833-1.5930;
Annual revenue: -4.45%;
Change in % for the previous day: -0.21.

Analytical review:

  • This week, the price of the Pound has grown by over 170 points against the USD. During yesterday’s trading session the rally in the GBP was blocked by the local resistance level of 1.4725;
  • Yesterday, important British statistics was released, which showed that according to the Office of National Statistics economic growth in the country fell to 2.0% on annual basis versus the previous value of 2.1%;
  • According to the US Department of Commerce, core orders for durable goods have increased by 0.4%, which exceeded the forecast of 0.3%;
  • “Commitments of Traders shows that the number of long positions dropped by 1795 contracts, up to 190421. Short positions have been opened for 130201 contracts;
  • Today, the data on the US GDP will become known and press-conference of Mrs Yellen, the head of the US Fed will be held. This data may affect market volatility and movement direction in the pair.

Summary:

  • Weak British statistics, positive US data, and high volatility in the financial markets put strong pressure on the British currency;
  • According to “COT” large investors have increased the number of long positions;
  • We expect the decline in the GBP against the USD. It is advisable to open short positions.

Trading tips for the currency pair GBP/USD

Key levels:
Support levels: 1.4655 and 1.4575.
Resistance levels: 1.4725.

Medium-term trading, H1
The currency is traded near the local support level of 1.4655. After breaking out and testing of 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 below the signal line. Take profit can be placed in parts at the levels of 1.4595, 1.4530 and 1.4450 with the use of trailing stops.

Medium-term trading, H1
Medium-term trading, H1

Short-term trading, М15
The currency is traded in the range of 1.4640-1.4675. It is advisable to enter the market after breaking out and testing of this zone. Positions shall be opened towards the signal line and the nearest support/resistance level. Risk per trade is not more than 3% of capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15




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