GBP/USD: possibility of short-term growth

Current trend

The pair continues to be in a global downtrend, but is strengthening locally on the backdrop of positive statistics, trading at 1.2870.

GBP is strengthening amid the macroeconomic data released today from the UK. Average Earnings Including Bonus in July increased to –1.0% against the forecast of –1.3%. Claimant Count Change fell in August to 73.7K against the background of the forecast of 100K, and the Unemployment Rate for July remained at the expected level of 4.1%.

The USD index started to decline again, having overcome the key level of 93 points and having dropped to 92.850. The unresolved issue of another USD 500 billion support package, which has not yet been approved by the US Senate, continues to put pressure on USD.

Support and resistance

On the global chart of the asset, the price continues to be within the ascending channel, currently forming corrective growth after reaching the support line. Now both scenarios are roughly equivalent, but thanks to the positive macroeconomic data, an upward scenario is most likely in the local perspective.

Resistance levels: 1.2920, 1.3400.

Support levels: 1.2765, 1.2250.

Trading tips

If the asset continues correctional growth and the price consolidates above the resistance level of 1.2920, long positions will be relevant with target at 1.3400. Stop-loss should be placed below the local low, at 1.2700.

If the asset continues to decline globally, and the price consolidates below the support line of the channel at 1.2765, new short positions can be opened with the target at 1.2250. Stop-loss can be set above the support line at 1.2850.

Implementation time: 7 days and more.