Current trend
Today, the pound is pressured by data on UK GDP in Q2 2018.
On a quarterly basis, the index met market expectations, rising from 0.1% to 0.4%. However, it did not reach the forecasts and amounted to 1.2% YoY. According to the report of the British Office of National Statistics (ONS), in Q2, the UK economy grew due to the strengthening of the services sector, restaurant and hotel business, transportation, and communications. But a decrease in total commercial investment by 0.7% due to the situation with Brexit reduced GDP growth YoY. Also, ONS indicated that the main trend towards a slowdown in real GDP will remain.
Support and resistance
The negative reaction of the market to the data of the British GDP forced the instrument to fall to the level of 1.3040, further reduction is possible to 1.3000 (Murrey ) and 1.2940 (Murrey ). The level of 1.3122 (Murrey , the midline of Bollinger Bands) is seen as key for the "bulls". If the instrument is consolidated above it, growth may continue to 1.3183 (Murrey ) and 1.3244 (Murrey ).
Technical indicators don't provide a clear signal. Bollinger Bands are diverging confirming the downward trend, and MACD histogram is growing in the negative zone. Stochastic reversing in the oversold zone leaves space for an upward correction.
Support levels: 1.3000, 1.2939.
Resistance levels: 1.3061, 1.3122, 1.3183, 1.3244.
Trading tips
Sell positions may be opened from the current level with targets at 1.3000, 1.2939 and stop loss at 1.3070.
Buy positions may be opened above 1.3122 with targets at 1.3183, 1.3244 and stop loss at 1.3080.
Implementation time: 3-4 days.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.3047
Take Profit 1.3000, 1.2939
Stop Loss 1.3070
Key Levels 1.2939, 1.3000, 1.3061, 1.3122, 1.3183, 1.3244
Alternative scenario
Recommendation BUY STOP
Entry Point 1.3130
Take Profit 1.3183, 1.3244
Stop Loss 1.3080
Key Levels 1.2939, 1.3000, 1.3061, 1.3122, 1.3183, 1.3244
Today, the pound is pressured by data on UK GDP in Q2 2018.
On a quarterly basis, the index met market expectations, rising from 0.1% to 0.4%. However, it did not reach the forecasts and amounted to 1.2% YoY. According to the report of the British Office of National Statistics (ONS), in Q2, the UK economy grew due to the strengthening of the services sector, restaurant and hotel business, transportation, and communications. But a decrease in total commercial investment by 0.7% due to the situation with Brexit reduced GDP growth YoY. Also, ONS indicated that the main trend towards a slowdown in real GDP will remain.
Support and resistance
The negative reaction of the market to the data of the British GDP forced the instrument to fall to the level of 1.3040, further reduction is possible to 1.3000 (Murrey ) and 1.2940 (Murrey ). The level of 1.3122 (Murrey , the midline of Bollinger Bands) is seen as key for the "bulls". If the instrument is consolidated above it, growth may continue to 1.3183 (Murrey ) and 1.3244 (Murrey ).
Technical indicators don't provide a clear signal. Bollinger Bands are diverging confirming the downward trend, and MACD histogram is growing in the negative zone. Stochastic reversing in the oversold zone leaves space for an upward correction.
Support levels: 1.3000, 1.2939.
Resistance levels: 1.3061, 1.3122, 1.3183, 1.3244.
Trading tips
Sell positions may be opened from the current level with targets at 1.3000, 1.2939 and stop loss at 1.3070.
Buy positions may be opened above 1.3122 with targets at 1.3183, 1.3244 and stop loss at 1.3080.
Implementation time: 3-4 days.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.3047
Take Profit 1.3000, 1.2939
Stop Loss 1.3070
Key Levels 1.2939, 1.3000, 1.3061, 1.3122, 1.3183, 1.3244
Alternative scenario
Recommendation BUY STOP
Entry Point 1.3130
Take Profit 1.3183, 1.3244
Stop Loss 1.3080
Key Levels 1.2939, 1.3000, 1.3061, 1.3122, 1.3183, 1.3244