GBP/USD: further growth is likely, but the beginning of correction is also possible

Current trend

British pound continues to consolidate against US dollar in view of general weakening of USD rate. The dollar is under additional pressure from negative fundamental background in the USA.

Today the pound was supported by Manufacturing PMI data. Among the news that may influence the dynamics of the pair one may point out FOMC decision on the interest rate to be published on Wednesday. The traders are also waiting for the follow-up statement by thwe Open Markets Committee. In case of tougher positions on monetary policy the interest of investors may go up.

Support and resistance

In the beginning of this week the pair slightly corrected downwards, but after reaching the lower border of the upward channel formed yet another upward wave.

In the short term the continuation of growth with target levels at 1.3040, 1.3115 is likely. The trend may be broken only in case of positive catalysts from FOMC.

Tecnical indicators continue to point out further growth. The volumes of long positions in MACD H4 chart remain high. Bollinger Bands are directed upwards on the D1 chart.

Support levels: 1.2890, 1.2860, 1.2805, 1.2755, 1.2700, 1.2620, 1.2560, 1.2500.

Resistance levels: 1.2910, 1.2955, 1.2995, 1.3040, 1.3115, 1.3200.

Trading tips

Long positions may be opened from the current level with target at 1.3040, 1.3115. Stop-loss will be placed at 1.2860.

 

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