GBP/USD: general analysis
25 January 2019, 09:48
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY |
| Entry Point | 1.3102 |
| Take Profit | 1.3230 |
| Stop Loss | 1.3070 |
| Key Levels | 1.2710, 1.2790, 1.2874, 1.2942, 1.3016, 1.3075, 1.3153, 1.3230, 1.3340 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.3070 |
| Take Profit | 1.3015 |
| Stop Loss | 1.3095 |
| Key Levels | 1.2710, 1.2790, 1.2874, 1.2942, 1.3016, 1.3075, 1.3153, 1.3230, 1.3340 |
Current trend
This week, the GBP/USD pair is growing, renewing the highs of the current year.
GBP strengthened against the background of positive statistics on the labor market, as well as “hawkish” comments from Bank of England officials. In addition, Labor representatives prepared a number of proposals regarding the Brexit deal, receiving support from various parties. The media in the UK reported on a secret meeting of 20 ministers in parliament, at which they discussed the issue of ending the ineffective scenario of leaving the EU. Investors see in the actions of the British government an attempt to organize a repeat vote on Brexit.
In the US, Republicans and Democrats rejected both bills aimed at ending the Shutdown. The inability to reach a consensus of two political forces reinforces the “bearish” trend of USD.
Today, market participants expect the publication of Gross Mortgage Approvals data and Retail Trade in the UK. In addition, US report on the state of the budget is due at 22:00 (GMT+2).
Support and resistance
On the 4-hour chart, the instrument is strengthened along the upper Bollinger band. The key resistance is the level of 1.3155. Bollinger bands are directed upwards, and the price range has widened, indicating the continuation of the uptrend. MACD histogram keeps a strong buy signal. Stochastic entered the overbought area, a strong sell signal can be formed during the day.
Resistance levels: 1.3153, 1.3230, 1.3340.
Support levels: 1.3075, 1.3016, 1.2942, 1.2874, 1.2790, 1.2710.
Trading tips
Long positions can be opened from the current level with the target at 1.3230 and stop loss 1.3070.
Short positions can be opened below 1.3075 with the target at 1.3015 and stop loss 1.3095.
Implementation period: 1–2 days.
This week, the GBP/USD pair is growing, renewing the highs of the current year.
GBP strengthened against the background of positive statistics on the labor market, as well as “hawkish” comments from Bank of England officials. In addition, Labor representatives prepared a number of proposals regarding the Brexit deal, receiving support from various parties. The media in the UK reported on a secret meeting of 20 ministers in parliament, at which they discussed the issue of ending the ineffective scenario of leaving the EU. Investors see in the actions of the British government an attempt to organize a repeat vote on Brexit.
In the US, Republicans and Democrats rejected both bills aimed at ending the Shutdown. The inability to reach a consensus of two political forces reinforces the “bearish” trend of USD.
Today, market participants expect the publication of Gross Mortgage Approvals data and Retail Trade in the UK. In addition, US report on the state of the budget is due at 22:00 (GMT+2).
Support and resistance
On the 4-hour chart, the instrument is strengthened along the upper Bollinger band. The key resistance is the level of 1.3155. Bollinger bands are directed upwards, and the price range has widened, indicating the continuation of the uptrend. MACD histogram keeps a strong buy signal. Stochastic entered the overbought area, a strong sell signal can be formed during the day.
Resistance levels: 1.3153, 1.3230, 1.3340.
Support levels: 1.3075, 1.3016, 1.2942, 1.2874, 1.2790, 1.2710.
Trading tips
Long positions can be opened from the current level with the target at 1.3230 and stop loss 1.3070.
Short positions can be opened below 1.3075 with the target at 1.3015 and stop loss 1.3095.
Implementation period: 1–2 days.
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