GBP/USD: staying in the upward trend

Current trend

Last trading week, GBP resumed growth against USD after a prolonged downward correction. At the end of the week, the pair moved up swiftly, passing more than 300 points in two days, and reached the level of 1.4140. Later the pair dropped to the level of 1.4000 and consolidated above it.

The main catalysts for renewed growth in the pair were weak macroeconomic data on retail sales and industrial production in the US. On Friday, trade sentiment changed after the publication of negative data on retail sales in the UK.

This week, one should focus on the data on the labor market and economic growth rates in the UK for Q4 2017. The United States will publish key indices and the minutes of the FOMC meeting.

Support and resistance

At the moment, the pair is in an uncertain situation: on the one hand, it remains in the long-term upward trend, on the other hand, it is possible to trace the formation of a shallow downward channel, and if the pair manages to overcome the 1.3900 mark, it will consolidate within this range with targets at 1.3690, 1.3650. Despite this, one should remain in the long-term uptrend and consider the prospect of the pair returning to the local highs of the end of January and new highs in the future.

Technical indicators continue to show a growth signal, MACD indicates the preservation of a high volume of long positions, and Bollinger Bands are directed upwards.

Support levels: 1.4000, 1.3925, 1.3900, 1.3830, 1.3765, 1.3650, 1.3600, 1.3570.

Resistance levels: 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 targets at 1.4280, 1.4345 and stop-loss at 1.3860.

Great Britan vs US Dollar

Buy Sell Spread
1.39873 1.39848 25

Scenario

Timeframe Weekly
Recommendations BUY
Entry Point 1.4025
Take Profit 1.4280, 1.4345
Stop Loss 1.3860
Support levels 1.3570, 1.3600, 1.3650, 1.3765, 1.3830, 1.3900, 1.3925, 1.4000, 1.4070, 1.4140, 1.4175, 1.4280, 1.4345

GBP/USD: staying in the upward trend

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