Current trend
The pair GBP/USD has been growing for the past two days, trading near the highs of June 2016.
Yesterday, the pound strengthened against the dollar amid a decline in net borrowings of the public sector in the UK: the indicator made up 0.979 billion pounds which was lower than expected. The slowdown in the growth of net borrowing is a favorable factor for the pound.
Today the market awaits publication of data on the UK labor market (11:30 GMT+2); high volatility is forecasted. One should also pay attention to the release of data on the change in PMI Markit index in the US manufacturing sector (16:45 GMT+2).
Support and resistance
On the H4 chart, the instrument grows along the upper line of Bollinger Bands, the price range is widened, which indicates a possible continuation of the uptrend. MACD histogram is in the positive area keeping a signal for the opening of long positions.
Support levels: 1.3995, 1.3940, 1.3825, 1.3750.
Resistance levels: 1.4071, 1.4100.
Trading tips
Buy orders may be opened from the current level with the target at 1.4100 and stop-loss at 1.3995 mark.
Short positions may be opened from the level of 1.3910 with the target at 1.3825 and stop-loss at 1.3950 mark.
Implementation time: 1-3 days.
Great Britan vs US Dollar
Buy Sell Spread
1.40999 1.40971 28
Scenario
Timeframe Day's Range
Recommendations BUY
Entry Point 1.4030
Take Profit 1.4100
Stop Loss 1.3995
Support levels 1.3750, 1.3825, 1.3940, 1.3995, 1.4071, 1.4100
Alternative scenario
Recommendations SELL STOP
Entry Point 1.3910
Take Profit 1.3825
Stop Loss 1.3950
Support levels 1.3750, 1.3825, 1.3940, 1.3995, 1.4071, 1.4100
The pair GBP/USD has been growing for the past two days, trading near the highs of June 2016.
Yesterday, the pound strengthened against the dollar amid a decline in net borrowings of the public sector in the UK: the indicator made up 0.979 billion pounds which was lower than expected. The slowdown in the growth of net borrowing is a favorable factor for the pound.
Today the market awaits publication of data on the UK labor market (11:30 GMT+2); high volatility is forecasted. One should also pay attention to the release of data on the change in PMI Markit index in the US manufacturing sector (16:45 GMT+2).
Support and resistance
On the H4 chart, the instrument grows along the upper line of Bollinger Bands, the price range is widened, which indicates a possible continuation of the uptrend. MACD histogram is in the positive area keeping a signal for the opening of long positions.
Support levels: 1.3995, 1.3940, 1.3825, 1.3750.
Resistance levels: 1.4071, 1.4100.
Trading tips
Buy orders may be opened from the current level with the target at 1.4100 and stop-loss at 1.3995 mark.
Short positions may be opened from the level of 1.3910 with the target at 1.3825 and stop-loss at 1.3950 mark.
Implementation time: 1-3 days.
Great Britan vs US Dollar
Buy Sell Spread
1.40999 1.40971 28
Scenario
Timeframe Day's Range
Recommendations BUY
Entry Point 1.4030
Take Profit 1.4100
Stop Loss 1.3995
Support levels 1.3750, 1.3825, 1.3940, 1.3995, 1.4071, 1.4100
Alternative scenario
Recommendations SELL STOP
Entry Point 1.3910
Take Profit 1.3825
Stop Loss 1.3950
Support levels 1.3750, 1.3825, 1.3940, 1.3995, 1.4071, 1.4100