GBP/USD: the pound remains under pressure
Current trend
GBP showed a strong decline against USD last week, retreating to local lows on April 6.
On Friday, British currency was under pressure of the Bank of England head Mark Carney's statement, which led the market to question the imminent increase in the interest rate by the regulator. In an interview with the BBC, Carney said that the time period for raising the interest rate may depend on the Brexit deal conclusion and also noted the decline in retail sales as well as rapid reduction in inflation.
Today, the instrument demonstrates corrective growth, and investors expect new drivers to appear on the market. The focus will be on business activity statistics on in Germany, the Eurozone and the United States.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range expands from below, making way for new local lows for the "bears".
At the moment, the indicators do not contradict the further development of the "bearish" trend in the short term. Nevertheless, developing of corrective growth at the beginning of the current trading week is possible.
Resistance levels: 1.4068, 1.4100, 1.4150, 1.4200.
Support levels: 1.4000, 1.3963, 1.3900.
Trading tips
To open long positions, one can rely on the rebound from the support level of 1.4000, with the subsequent breakout of the 1.4040–1.4050 mark. Take-profit — 1.4100 or 1.4150. Implementation period: 2-3 days.
The breakdown of 1.4000 mark may serve as a signal to further sales with the target at 1.3900. Stop-loss – 1.4045. Implementation period: 2-3 days.
Scenario
Timeframe Intraday
Recommendation BUY LIMIT
Entry Point 1.4000
Take Profit 1.4100, 1.4150
Stop Loss 1.3950
Key Levels 1.3900, 1.3963, 1.4000, 1.4068, 1.4100, 1.4150, 1.4200
Alternative scenario
Recommendation SELL STOP
Entry Point 1.3990
Take Profit 1.3900
Stop Loss 1.4045
Key Levels 1.3900, 1.3963, 1.4000, 1.4068, 1.4100, 1.4150, 1.4200
GBP showed a strong decline against USD last week, retreating to local lows on April 6.
On Friday, British currency was under pressure of the Bank of England head Mark Carney's statement, which led the market to question the imminent increase in the interest rate by the regulator. In an interview with the BBC, Carney said that the time period for raising the interest rate may depend on the Brexit deal conclusion and also noted the decline in retail sales as well as rapid reduction in inflation.
Today, the instrument demonstrates corrective growth, and investors expect new drivers to appear on the market. The focus will be on business activity statistics on in Germany, the Eurozone and the United States.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range expands from below, making way for new local lows for the "bears".
At the moment, the indicators do not contradict the further development of the "bearish" trend in the short term. Nevertheless, developing of corrective growth at the beginning of the current trading week is possible.
Resistance levels: 1.4068, 1.4100, 1.4150, 1.4200.
Support levels: 1.4000, 1.3963, 1.3900.
Trading tips
To open long positions, one can rely on the rebound from the support level of 1.4000, with the subsequent breakout of the 1.4040–1.4050 mark. Take-profit — 1.4100 or 1.4150. Implementation period: 2-3 days.
The breakdown of 1.4000 mark may serve as a signal to further sales with the target at 1.3900. Stop-loss – 1.4045. Implementation period: 2-3 days.
Scenario
Timeframe Intraday
Recommendation BUY LIMIT
Entry Point 1.4000
Take Profit 1.4100, 1.4150
Stop Loss 1.3950
Key Levels 1.3900, 1.3963, 1.4000, 1.4068, 1.4100, 1.4150, 1.4200
Alternative scenario
Recommendation SELL STOP
Entry Point 1.3990
Take Profit 1.3900
Stop Loss 1.4045
Key Levels 1.3900, 1.3963, 1.4000, 1.4068, 1.4100, 1.4150, 1.4200