Current trend
The main event of the previous week for GBP was the announcement of early parliamentary elections by the UK Prime Minister Theresa May. The decision was unexpected for the market players, and the pair GBP/USD that used to be under pressure from potential problems caused by Brexit gained strong support and almost 400 points during the trading day. This consolidation of the pound was possible in view of simultaneous weakening of US dollar after the publication of uncertain data on the construction market. The remaining part of the week the pair spent in consolidation: on the other hand, there were no important releases fro the UK except for the Thursday statement by the Bank of England head Mark Carney, and on the other hand the majority of investors with opened short positions appeared to be outside of the market.
Today the index or industrial orders is to be published by the Confederation of British Industry at 12:00 (GMT+2). From the USA the market is waiting for the national activity index by FRB Chicago at 14:30 (GMT+2). Both indicators are of secondary importance and have negative outlooks. The only important news will be the statement by FOMC representative Neel Cashkari at 17:30 (GMT+2).
UK ans USA GDP data are due on Friday and after that the pair may correct between the levels of 1.2700 and 1.2865.
Support and resistance
Support levels: 1.2610, 1.2700, 1.2780.
Resistance levels: 1.2865, 1.3035, 1.3200.
Trading tips
Short positions may be opened at the market price with targets at 1.2780,1.2700 and stop-loss at 1.2840.
Alternatively, buy positions may be opened from the level of 1.2865 with targets at 1.3035 and stop-loss at 1.2770.
The main event of the previous week for GBP was the announcement of early parliamentary elections by the UK Prime Minister Theresa May. The decision was unexpected for the market players, and the pair GBP/USD that used to be under pressure from potential problems caused by Brexit gained strong support and almost 400 points during the trading day. This consolidation of the pound was possible in view of simultaneous weakening of US dollar after the publication of uncertain data on the construction market. The remaining part of the week the pair spent in consolidation: on the other hand, there were no important releases fro the UK except for the Thursday statement by the Bank of England head Mark Carney, and on the other hand the majority of investors with opened short positions appeared to be outside of the market.
Today the index or industrial orders is to be published by the Confederation of British Industry at 12:00 (GMT+2). From the USA the market is waiting for the national activity index by FRB Chicago at 14:30 (GMT+2). Both indicators are of secondary importance and have negative outlooks. The only important news will be the statement by FOMC representative Neel Cashkari at 17:30 (GMT+2).
UK ans USA GDP data are due on Friday and after that the pair may correct between the levels of 1.2700 and 1.2865.
Support and resistance
Support levels: 1.2610, 1.2700, 1.2780.
Resistance levels: 1.2865, 1.3035, 1.3200.
Trading tips
Short positions may be opened at the market price with targets at 1.2780,1.2700 and stop-loss at 1.2840.
Alternatively, buy positions may be opened from the level of 1.2865 with targets at 1.3035 and stop-loss at 1.2770.