GBP/USD: resumption of the upward trend

Current trend

The British currency slipped substantially in the second half of February amid rising demand for the dollar. At the end of the month, the pair declined to a strong support level of 1.3710. Then the up-wave began to form.

It is worth noting that GBP against USD did not come out of the long-term uptrend, but rebounded off the lower border and went up. During the current trading week, the pair moved to the stage of lateral consolidation, and went within the 70-point channel. Today, the pound dropped slightly due to the absence of important releases in the UK. At the end of the current trading week, special attention should be paid to data on industrial production, the assessment of GDP change from NISER and inflationary pressures from the UK. The US will respond with releases on the level of unemployment, as well as data on the change in the number of employed in non-agricultural sectors.

Support and resistance

In the medium term, the upward trend is expected to resume, up to the local maximum levels in late January and in early February. An alternative scenario is the growth to the upper boundary of the downward channel at 1.3925 mark and the fall of the pair, overcoming the lower boundary of the long-term trend and a rapid decline to new lows of 1.3710, 1.3650.

Support levels: 1.3830, 1.3765, 1.3171, 1.3650, 1.3520, 1.3500, 1.3410, 1.3370.

Resistance levels: 1.4000, 1.4070, 1.4140, 1.4175, 1.4280, 1.4345.

Trading tips

In this situation, long positions may be opened from the current level with the target at 1.4000, in the middle term the targets will be at the levels of 1.4175, 1.4280 and the stop-loss at 1.3740.

Great Britan vs US Dollar

Buy Sell Spread
1.38873 1.38842 31

Scenario

Timeframe Weekly
Recommendations BUY
Entry Point 1.3868
Take Profit 1.4000, 1.4175, 1.4280
Stop Loss 1.3740
Support levels 1.3370, 1.3410, 1.3500, 1.3520, 1.3710, 1.3765, 1.3830, 1.4000, 1.4070, 1.4140, 1.4175, 1.4280, 1.4345

GBP/USD: resumption of the upward trend

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

liteforex.com
liteforex.com

Latest posts by liteforex.com (see all)

Comments

comments