Sep 16, 2020, 10:23:45 AM
GBP/USD: general review
Current trend
The GBP/USD pair is showing a decline in trading on Wednesday amid the publication of negative statistics for the British economy. GBP was weakened by the slowdown in the growth of the Retail Price Index in the UK in August: the indicator increased by 0.5% in annual terms against the forecast of 0.6%. In monthly terms, the indicator was according to the forecast, fixing a decline of 0.3%, which also did not support GBP.
Today, the instrument's dynamics may be affected by data from the US on changes in the level of Retail Sales in August (14:30 GMT+2). The indicator is expected to grow by 1.0%, which may have a favorable effect on the USD exchange rate. The market is also awaiting the announcement of the Fed's decision on the interest rate (20:00 GMT+2) and the follow-up press conference. It is expected that the regulator will keep the rate at the level of 0.25%.
Support and resistance
On the H4 chart, a lateral trend is forming. The instrument corrected to the upper line of Bollinger Bands; the indicator cloud is narrowing and it is likely that lateral movement will persist in the short term. MACD histogram is in the negative area reducing its volumes; the signal line reversed upwards, the sell signal is losing its relevance.
Resistance levels: 1.2900, 1.2950, 1.3000, 1.3050.
Support levels: 1.2850, 1.2800, 1.2765.
Trading tips
Short positions may be opened from the level of 1.2850 with target at 1.2800 and stop-loss at 1.2880.
Long positions may be opened from the level of 1.2950 with targets at 1.3000 and stop-loss at 1.2920.
Implementation time: 1-3 days.
Scenario
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Timeframe
Intraday
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Recommendation
SELL STOP
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Entry Point
1.2850
-
Take Profit
1.2800
-
Stop Loss
1.2880
-
Key Levels
1.2765, 1.2800, 1.2850, 1.2900, 1.2950, 1.3000, 1.3050
Alternative scenario
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Timeframe
Intraday
-
Recommendation
BUY STOP
-
Entry Point
1.2950
-
Take Profit
1.3000
-
Stop Loss
1.2920
-
Key Levels
1.2765, 1.2800, 1.2850, 1.2900, 1.2950, 1.3000, 1.3050
