GBP/USD: the pair is falling

Current trend

After the growth by more than 300 points in 10 trading days in early June, the pair GBP/USD could not break the key support level of 1.3350, reversed and again began to fall again. Now it is trading at the level of 1.3120. The main catalyst for the movement was positive data from the US, due to which the demand for USD significantly increased. Poor UK Industrial Production and Manufacturing Production data affected the price negatively.

On Friday, the pair continues to decline due to the trading mood. The next trading week, there are a lot of important releases, and the instrument can continue falling and test new local lows.

Today the traders are focused on UK MPC Member Cunliffe Speech and US indices releases.

Support and resistance

The pair is in a downward broad trend and is moving to the levels of 1.2975, 1.2930 in the short term. Technical indicators confirm the forecast, on the 4-hour chart and above, MACD volumes of short positions are high, and Bollinger bands are directed downward.

Resistance levels: 1.3150, 1.3180, 1.3205, 1.3270, 1.3295, 1.3320, 1.3350.

Support levels: 1.3110, 1.3050, 1.3000, 1.2975, 1.2930.

Trading tips

It is relevant to increase the volume of short positions from the current level and open pending orders from the levels of 1.3205, 1.3270 with the targets at 1.2975, 1.2930 and stop loss 1.3310.

Great Britan vs US Dollar

Buy Sell Spread
1.32166 1.3214 26

Scenario

Timeframe Weekly
Recommendations SELL
Entry Point 1.3126
Take Profit 1.2975, 1.2930
Stop Loss 1.3310
Support levels 1.2930, 1.2975, 1.3000, 1.3050, 1.3110, 1.3150, 1.3180, 1.3205, 1.3270, 1.3295, 1.3320, 1.3350

Alternative scenario

Recommendations SELL LIMIT
Entry Point 1.3205, 1.3270
Take Profit 1.2975, 1.2930
Stop Loss 1.3310
Support levels 1.2930, 1.2975, 1.3000, 1.3050, 1.3110, 1.3150, 1.3180, 1.3205, 1.3270, 1.3295, 1.3320, 1.3350

GBP/USD: the pair is falling

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