GBP/USD: the pair is trying to grow

Current trend

In December GBP against USD was trading in the downward trend, growing due to strong UK background and falling again. The pair reached the level of 1.3300 and reversed upwards.

Yesterday despite another USA Fed interest rate increase to 1.5%, which the traders have considered, US currency began to fall significantly due to restricted comments of Fed’s head Janet Yellen’s commentaries. The main US economy problem is the poor inflation growth rate and the high possibility of US government debt increasing due to the tax reformation. Within the following press conference, the forecast of falling of the unemployment decreased, as the inflation expectations stayed the same. As USD has rapidly fallen, the pair went up by 100 points more and reached the level of 1.3465.

In the morning pound has insignificantly fallen against dollar, but due to positive Retail Sales data began to grow again. There are enough macroeconomical releases to be published today, which can change the situation in the market: BoE Monetary Policy Summary and BoE Asset Purchase Facility. In the evening the traders are focused on US key indices and Retail Sales data publications.

Support and resistance

In the middle term the consolidation of the pair within the upward channel and return to the long-term upward trend in expected. In the short term the development of the upward momentum with the target at 1.3500, 1.3520 is expected. Technical indicators confirms the suggestion. On the daily chart MACD long positions volumes are growing, Bollinger Bands are pointed upwards.

Resistance levels: 1.3450, 1.2465, 1.3480, 1.3500, 1.3520, 1.3550.

Support levels: 1.3410, 1.3380, 1.3350, 1.3320, 1.3300, 1.3270, 1.3225.

Trading tips

It is relevant to increase the volumes of long positions at the current level with the targets at 1.3500, 1.3520 and stop loss at 1.3380.

Great Britan vs US Dollar

Buy Sell Spread
1.34292 1.34265 27

Scenario

Timeframe Day’s Range
Recommendations BUY
Entry Point 1.3432
Take Profit 1.3500, 1.3520
Stop Loss 1.3380
Support levels 1.3225, 1.3270, 1.3300, 1.3320, 1.3350, 1.3380, 1.3410, 1.3450, 1.2465, 1.3480, 1.3500, 1.3520, 1.3550

GBP/USD: the pair is trying to grow

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