After a significant upward correction in early July, the British currency against the US dollar rushed down again.
This week, GBP lost all its positions and fell by more than 250 points. Today, on a negative UK background, the pair broke down a key support level and a local low of 1.3050 and has consolidated below this mark. Weak data was published on the Producer Price Index, the retail price index and inflation of the United Kingdom. Now, the pair is trading at the level of 1.3030 and is under pressure due to a sharp drop in investment interest in the pound.
At the end of this week, attention must be paid to data on retail sales in the UK and the US labor market.
Support and resistance
The pair continues to trade in the sloping downward channel and has almost reached the lower border of this trend, but due to new circumstances, it is likely that it will break down a strong support level and will go lower. The target marks in the short term are 1.2930, 1.2850. The main catalysts for pressure on the instrument are the growth in demand for USD and the negative fundamental background in the UK.
Technical indicators confirm the fall outlook: MACD shows rapid growth in the volume of long positions on H4 chart and earlier, Bollinger Bands are pointing down.
Support levels: 1.3000, 1.2975, 1.2930, 1.2910, 1.2850, 1.2800, 1.2745.
Resistance levels: 1.3050, 1.3110, 1.3150, 1.3180, 1.3205, 1.3225, 1.3270, 1.3350.
In this situation, short positions may be opened from the current level with targets at 1.2930, 1.2850 and stop loss at 1.3090.
Great Britan vs US Dollar
|Take Profit||1.2930, 1.2850|
|Support levels||1.2745, 1.2800, 1.2850, 1.2910, 1.2930, 1.2975, 1.3000, 1.3050, 1.3110, 1.3150, 1.3180, 1.3205, 1.3225, 1.3270, 1.3350|
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