GBP/USD: GBP is consolidating after a pullback the day before
Current trend
GBP is trading marginally lower against USD during the Asian session, retesting 1.3800 for a breakdown.
The day before, the instrument showed multidirectional dynamics, but closed with a noticeable minus, despite the publication of optimistic macroeconomic statistics from the UK. Markit Construction PMI in June rose from 64.2 to 66.3 points, while experts had expected its decline to 63.8 points.
In turn, American statistics turned out worse than the forecasts. ISM Services PMI in June fell from 64 to 60.1 points, although analysts had expected a value at 63.5 points. Markit Services PMI corrected down from 64.8 to 64.6 points with a neutral outlook.
Additional support for GBP is provided by the intentions of the British authorities to fully open the economy on July 19, despite the smoothed increase in the number of new cases of coronavirus.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range expands from below, making way for new local lows for the "bears". MACD has reversed to growth having formed a weak buy signal (located above the signal line). Stochastic, after rather active growth, returns to flat dynamics, indicating an approximate balance of power in the ultra-short term.
To open new positions, it is necessary to wait for the trade signals to become clear.
Resistance levels: 1.3857, 1.3900, 1.3960, 1.4000.
Support levels: 1.3785, 1.3750, 1.3700.
GBP is trading marginally lower against USD during the Asian session, retesting 1.3800 for a breakdown.
The day before, the instrument showed multidirectional dynamics, but closed with a noticeable minus, despite the publication of optimistic macroeconomic statistics from the UK. Markit Construction PMI in June rose from 64.2 to 66.3 points, while experts had expected its decline to 63.8 points.
In turn, American statistics turned out worse than the forecasts. ISM Services PMI in June fell from 64 to 60.1 points, although analysts had expected a value at 63.5 points. Markit Services PMI corrected down from 64.8 to 64.6 points with a neutral outlook.
Additional support for GBP is provided by the intentions of the British authorities to fully open the economy on July 19, despite the smoothed increase in the number of new cases of coronavirus.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range expands from below, making way for new local lows for the "bears". MACD has reversed to growth having formed a weak buy signal (located above the signal line). Stochastic, after rather active growth, returns to flat dynamics, indicating an approximate balance of power in the ultra-short term.
To open new positions, it is necessary to wait for the trade signals to become clear.
Resistance levels: 1.3857, 1.3900, 1.3960, 1.4000.
Support levels: 1.3785, 1.3750, 1.3700.