Current trend
GBP is trading upward against USD in the morning session, again trying to consolidate above 1.3900.
The "bulls" are regaining positions lost the day before, when USD received an impetus to grow amid optimistic statements by the US Federal Reserve Vice-Chair Richard Clarida that the regulator is considering the possibility of reducing the existing stimulus this year. However, a more confident USD growth was hampered by an unexpectedly weak ADP report on private sector employment. In July, the US economy created only 330K jobs, while market forecasts assumed their growth by almost 700K.
Today, British investors will follow the publication of the minutes of the meeting of the Bank of England on the interest rate. The market again does not expect any changes in the vector of monetary policy; however, comments and updated forecasts will be very important. The UK economy is showing optimistic results; in addition, the country is managing to cope with the next wave of coronavirus incidence, so analysts do not predict new restrictions.
Support and resistance
Bollinger Bands in D1 chart show quite active growth. The price range is narrowing in response to the ambiguous dynamics of recent days, but remains wide enough for the current level of market activity. MACD is trying to reverse downwards preserving a previous buy signal (located above the signal line). Stochastic, on the contrary, demonstrates a confident decline, practically not reacting to attempts of the instrument to grow at the beginning of the week.
Resistance levels: 1.3900, 1.3960, 1.4000.
Support levels: 1.3857, 1.3800, 1.3750, 1.3700.
GBP is trading upward against USD in the morning session, again trying to consolidate above 1.3900.
The "bulls" are regaining positions lost the day before, when USD received an impetus to grow amid optimistic statements by the US Federal Reserve Vice-Chair Richard Clarida that the regulator is considering the possibility of reducing the existing stimulus this year. However, a more confident USD growth was hampered by an unexpectedly weak ADP report on private sector employment. In July, the US economy created only 330K jobs, while market forecasts assumed their growth by almost 700K.
Today, British investors will follow the publication of the minutes of the meeting of the Bank of England on the interest rate. The market again does not expect any changes in the vector of monetary policy; however, comments and updated forecasts will be very important. The UK economy is showing optimistic results; in addition, the country is managing to cope with the next wave of coronavirus incidence, so analysts do not predict new restrictions.
Support and resistance
Bollinger Bands in D1 chart show quite active growth. The price range is narrowing in response to the ambiguous dynamics of recent days, but remains wide enough for the current level of market activity. MACD is trying to reverse downwards preserving a previous buy signal (located above the signal line). Stochastic, on the contrary, demonstrates a confident decline, practically not reacting to attempts of the instrument to grow at the beginning of the week.
Resistance levels: 1.3900, 1.3960, 1.4000.
Support levels: 1.3857, 1.3800, 1.3750, 1.3700.