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.
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
|Take Profit||1.2975, 1.2800|
|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|
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