GBP/USD: further growth after side consolidation

Current trend

As the end of the year approaches, the volatility of the majors is visibly reducing, and the British currency against US dollar is no exclusion. It should be mentioned that since the beginning of the month the pair GBP/USD has been trading in side consolidation, but this channel was much wider in the first half of the month. Right now it is narrowing down and amounts to approximately 150 points.

An additional catalyst for the preservation of the current trend is positive data from the UK and the USA supporting their national currencies. Although USD gained support from key releases on inflation, labor market, and interest rate increase, the pair continues to trade in the upward range which is strengthening the positions of GBP.

Today the economic calendar is practically empty for the USA and the UK, and the pair will continue to move based on the trading tendencies.

Support and resistance

In the short term the pair will continue to trade in the narrowing side channel after which the preservation of long-term upward trend is likely. At the end of the current week final data on the UK and US economic growth rates in Q3 2017 are due, but they are unlikely to increase the pair’s volatility. Technical indicators in D1 chart continue to indicate the preservation of the upward trend. This is also confirmed by the big volume of long positions in MACD indicator and the upward direction of Bollinger Bands.

Support levels: 1.3350, 1.3320, 1.3300, 1.3270, 1.3225, 1.3170.

Resistance levels: 1.3410, 1.3450, 1.3465, 1.3480, 1.3500, 1.3520, 1.3550.

Trading tips

In this situation pending long positions may be opened from the levels of 1.3320, 1.3300 with targets at 1.3500, 1.3550 and stop-loss at 1.3250.

Great Britan vs US Dollar

Buy Sell Spread
1.33604 1.33576 28

Scenario

Timeframe Weekly
Recommendations BUY LIMIT
Entry Point 1.3320, 1.3300
Take Profit 1.3500, 1.3550
Stop Loss 1.3250
Support levels 1.3170, 1.3225, 1.3270, 1.3300, 1.3320, 1.3350, 1.3410, 1.3450, 1.3465, 1.3480, 1.3500, 1.3520, 1.3550

GBP/USD: further growth after side consolidation

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