Technical data of the currency pair:
Previous closing: 1.4692; Daily range: 1.4640-1.4723;
Opening: 1.4692; 52- week range: 1.3833-1.5930;
Annual revenue: -4.46%; Change in % for the previous day: +0.62;

Analytical review:

  • In the past few sessions the GBP has strengthened against the USD (over 500 points). During yesterday’s session the rally of the GBP continued and the currency grew by 0.62%;
  • Demand for the British currency is increasing due to the decrease of expectation of the exit of the EK from the EU. The last poll showed that 45% of the respondents would like to stay in the EU; 42% are for the exit from the EU;
  • Last week, important US statistics was released, which showed that consumer prices in May have grown by 0.2% against the forecast of 0.3%;
  • “Commitments of Traders’ shows ambiguous picture. Large investors have reduced the number of long positions by 61210 contracts. Short positions have been also reduced by 33305 contracts;
  • This week, the head of the US Fed, Mrs. Janet Yellen will make a speech (today) and referendum in the UK will be held (Thursday). These events may affect market volatility and movement in the pair.

Summary:

  • Weak US statistics, forthcoming referendum on Brexit 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 GBP.
  • Market movement is mixed. Therefore, it is advisable to enter the market from the key support and resistance levels.

Trading tips for the currency pair GBP/USD

Key levels:
Support levels: 1.4600 and 1.4450.
Resistance level: 1.4725

Medium-term trading, H4
The currency is traded near resistance level of 1.4725. After breaking out and testing of this level and in case of the respective (such as Price Action pattern), we recommend to open long 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 1.4790, 1.4850 and 1.4895 with the use of trailing stops.

Medium-term trading, H4
Medium-term trading, H4

Short-term trading, М15
The currency has broken down and consolidated above the local resistance level of 1.4695. If the price maintains the mirrored support level of 1.4695, we recommend to open long 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 : 1.4770, 1.4810 and 1.4850 with the use of trailing stops.

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




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