GBP/USD: to new local lows

Current trend

GBP against USD is moving within a broad downwards channel, despite the July decline in volatility. The downward momentum significantly decreased due to a drop in investment interest in the overbought dollar. An additional catalyst for the pair’s growth was weak data on key sectors of the US economy in the middle of last month. At the end of last trading week, the pair reached the upper border of the current downward trend at 1.3210 due to the British positive fundamental background, and dollar is now strengthening due to favorable data and the growth of demand before US key releases publications.

At the end of this week US data on the labor market will be published, as well as Fed’s and BoE interest rates decisions, so high volatility of the instrument is expected.

Support and resistance

The pair remains in a downward trend. Technical indicators confirm the fall forecast. On the daily chart and higher, MACD keeps high volumes of short positions, and Bollinger bands are directed downward.

Resistance levels: 1.3150, 1.3180, 1.3210, 1.3230, 1.3270, 1.3295.

Support levels: 1.3110, 1.3000, 1.2970, 1.2955, 1.2930, 1.2850, 1.2800.

Trading tips

It is relevant to increase the volumes of short positions from the current level with the targets at 1.2975, 1.2800 and stop loss 1.3250.

Great Britan vs US Dollar

Buy Sell Spread
1.31205 1.31179 26


Timeframe Weekly
Recommendations SELL
Entry Point 1.3130
Take Profit 1.2975, 1.2800
Stop Loss 1.3250
Support levels 1.2800, 1.2850, 1.2930, 1.2955, 1.2970, 1.3000, 1.3110, 1.3150, 1.3180, 1.3210, 1.3230, 1.3270, 1.3295

GBP/USD: to new local lows

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