Review and dynamics
Despite the decision of the Bank of England to leave interest rates unchanged, at the level of 0.5%, fundamental background is in favor of the decline in the pair.

However, on the hourly chart the price has broken out upward line of the channel at EMA200. The indicators OsMA and Stochastic give buy signals. On the hourly chart moving averages lines with the periods of 144 and 200 have also turned upwards

Our opinion
Short-term upward correction may continue if British macro-economic data, scheduled for the release tomorrow and on Friday will be positive.

Upward correction can last until the meeting of the Bank of England. The rise in the pair above the level of 1.3230 (ЕМА200, ЕМА144 on hourly chart, ЕМА50 on 4-hour chart), may trigger further rise to resistance levels of 1.3480 (ЕМА144) and 1.3670 (ЕМА200 on 4-hour chart).

If the pair maintains above the level of 1.3480 until the end of the month, then a pin-bar will be formed on the monthly chart, which may be a signal of the rise in the pair up the level of 1.3650 (lows of 2009 and 2001), 1.3670 (closing price of "Black Friday") , 1.3860 (lows of February and the last wave of decline from mid-December 2015 and the level of 1.5230, from which the pair began to rise to the highs of June at the level of 1.5000 (Fibonacci 0%).

However, uncertainty of the economic prospects after Brexit and expectations of monetary policy easing and will put pressure on the Pound. While expectations of the rise in the interest rate in the USA this year will add more pressure on the pair.

The pair GBP/USD is likely to decline in the medium-term.

Support levels: 1.3300, 1.3230, 1.3120, 1.3020, 1.2900 and 1.2800.
Resistance levels: 1.3430, 1.3480, 1.3500, 1.3600, 1.3670, 1.3700, 1.3800 and 1.3860.

Trading tips
Sell Stop: 1.3190. Stop-Loss: 1.3240. Take-Profit: 1.3120, 1.3020, 1.2900 and 1.2800.
Buy Stop: 1.3310. Stop-Loss: 1.3260. Take-Profit: 1.3340, 1.3400, 1.3480, 1.3500, 1.3600, 1.3670, 1.3700, 1.3800 and 1.3860.

Upward correction can continue
Upward correction can continue

At support level of 1.3230
At support level of 1.3230

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.

Follow us in social networks!
Live Chat
Leave feedback