During last month GBP against USD was trading in the upward trend due to the investments outflow into the US currency.
Dollar is under pressure due to the publications of negative macroeconomical data of the main economy sectors, while the regulator pursues a program of stimulating the US economy. As the USD is falling, the demand on commodity currencies, EUR, and GBP has grown significantly. Since March GBP has gained more than 1000 points against the USD and is testing new highs. The favorable fundamental trend in the UK is worth mentioning, as the strong data of the main economy sectors of the UK were published last month, which makes the Bank of England review the monetary policy and cut the stimulation measures.
This week the US employment market and the Bank of England interest rate decision and BoE Asset Purchase Facility are worth traders’ attention.
Support and resistance
Technical indicators keep a buy signal: MACD reflects the high volume of the long positions, and Bollinger Bands are pointed upwards.
Support levels: 1.2930, 1.2805, 1.2700, 1.2590, 1.2360, 1.2300, 1.2170.
Resistance levels: 1.3125, 1.3200, 1.3250, 1.3310, 1.3380, 1.3490.
In the short term the growth to the level of 1.3310 is expected, and then the reversal of the trend or turning into sideways consolidation is suggested, one can open pending short positions from the levels of 1.3310, 1.3380 with the target at 1.2805, stop loss is 1.3420.