GBP/USD

GBP/USD: general review

Current trend, Today, the pair fell below 1.2480, updating the annual minimum.

The negotiations on Brexit remains the focus of investors' attention. Yesterday, Theresa May postponed a vote in the UK Parliament on a deal with the EU for an indefinite period. This time is planned to be used to solve the Irish border issue.  Meanwhile, the Conservative Party is discussing the possibility of a vote of no-confidence in the Prime Minister.

USD strengthened yesterday amid the publication of favorable macroeconomic data. The producer price index increased by 0.1% MoM, above the forecast, and by 2.5% YoY. A similar index, excluding food and energy, recorded an increase of 0.3% MoM and 2.7% YoY.

Today, investors will pay attention to the publication of the Consumer Price Index in the US in November. CPI is expected to fall from 2.5% to 2.2% YoY and MoM it may drop to 0.0% from 0.3% a month earlier. Core CPI is projected to rise from 2.1% to 2.2%. If the forecast proves correct, it can support USD.

Support and resistance

On the H4 chart, there is a downward correction, the instrument is traded between the lower and middle borders of Bollinger Bands, the price range is expanded, which indicates a possible continuation of the downward movement. MACD histogram is in the negative zone, the signal line is crossing its body from below, forming a strong signal for the opening of short orders.

Support levels: 1.2507, 1.2476, 1.2439, 1.2400.

Resistance levels: 1.2562, 1.2637, 1.2658, 1.2695, 1.2724, 1.2761.

04c6ab565ab0e794f512ced63d341d17.png

Trading tips

Short positions may be opened from 1.2470 with the target at 1.2400 and stop loss at 1.2500. Implementation period: 1-3 days.

Long positions may be opened from 1.2761 with the target at 1.2820 and stop loss at 1.2725. Implementation period: 2-5 days.

 

Scenario

Timeframe Intraday
Recommendation SELL STOP
Entry Point 1.2470
Take Profit 1.2400
Stop Loss 1.2500
Key Levels 1.2400, 1.2439, 1.2476, 1.2507, 1.2562, 1.2637, 1.2658, 1.2695, 1.2724, 1.2761

 

Alternative scenario

 

Recommendation BUY STOP
Entry Point 1.2761
Take Profit 1.2820
Stop Loss 1.2725
Key Levels 1.2400, 1.2439, 1.2476, 1.2507, 1.2562, 1.2637, 1.2658, 1.2695, 1.2724, 1.2761

Add comment

Security code
Refresh

© 2014-2018 ForexCrypto.top, Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange, or any kind of trading you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance. ForexCrypto.top is an affiliate partner with various brokers and may be compensated for referred Traders. All reviews remain unbiased and objective and immediate action will be taken against any broker which is found to be in breach of regulation. These partnerships have proven to be great aids in the furthering communication between brokers and our visitors. Only the NFA regulated brokers featured on this site are available to U.S. customers. Forex

Search