Current trend
GBP shows a slight decline in pairing with USD in the morning session, again preparing to test 1.3800 for a breakdown.
The positions of GBP remain quite vulnerable on the eve of the publication of data on the US labor market at the end of the week. Traders' confidence is fueled by the ADP Employment Change report, which was released the day before. In June, the figure increased by 692K after an increase of 886K in May.
In turn, the UK data contributed to additional selling of GBP. In particular, the revised UK GDP in Q1 2021 was revised downward: from –1.5% QoQ to –1.6% QoQ. In annual terms, the country's economy again loses 6.1% YoY.
Today, investors are focused on the speech of the Bank of England's Governor Andrew Bailey, as well as the publication of Markit Manufacturing PMI.
Support and resistance
Bollinger Bands in D1 chart demonstrate active decrease. The price range is narrowing from below, reflecting the emergence of ambiguous dynamics of trading in the short/medium term. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic, having approached its lows, is reversing into the horizontal plane indicating risks of overbought GBP in the ultra-short term.
Resistance levels: 1.3857, 1.3900, 1.3960, 1.4000.
Support levels: 1.3785, 1.3750, 1.3700.
GBP shows a slight decline in pairing with USD in the morning session, again preparing to test 1.3800 for a breakdown.
The positions of GBP remain quite vulnerable on the eve of the publication of data on the US labor market at the end of the week. Traders' confidence is fueled by the ADP Employment Change report, which was released the day before. In June, the figure increased by 692K after an increase of 886K in May.
In turn, the UK data contributed to additional selling of GBP. In particular, the revised UK GDP in Q1 2021 was revised downward: from –1.5% QoQ to –1.6% QoQ. In annual terms, the country's economy again loses 6.1% YoY.
Today, investors are focused on the speech of the Bank of England's Governor Andrew Bailey, as well as the publication of Markit Manufacturing PMI.
Support and resistance
Bollinger Bands in D1 chart demonstrate active decrease. The price range is narrowing from below, reflecting the emergence of ambiguous dynamics of trading in the short/medium term. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic, having approached its lows, is reversing into the horizontal plane indicating risks of overbought GBP in the ultra-short term.
Resistance levels: 1.3857, 1.3900, 1.3960, 1.4000.
Support levels: 1.3785, 1.3750, 1.3700.