GBP/USD: general analysis
28 January 2019, 13:17
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL LIMIT |
| Entry Point | 1.3215, 1.3255, 1.3300 |
| Take Profit | 1.2900, 1.2785 |
| Stop Loss | 1.3370 |
| Key Levels | 1.2785, 1.2900, 1.2975, 1.3000, 1.3075, 1.3140, 1.3155, 1.3215, 1.3255, 1.3290, 1.3300, 1.3350, 1.3370 |
Current trend
GBP continues to rise against USD. During several trading weeks since the beginning of January, the GBP/USD pair has gained more than 800 points, and the upward momentum is still in force, despite the Brexit.
Strong data on the labor market, major indices and lending became one of the key catalysts for strengthening. It is possible that the additional influx of demand is due to the possibility that the government can change its mind upon the Brexit issue. However, in the event of a political crisis due to the opposites of the views of the Parliament and the British Prime Minister on the deal, a reversal and collapse of CBP are likely.
This week, special attention should be paid to statistics on lending and major indices in the UK. In the United States data on the labor market and the construction sector will be published.
Support and resistance
Last week, the pair finally left the downward range, breaking through the key resistance level of 1.3000, and the demand for GBP increased significantly. However, GBP does not have the strength and catalysts for significant further growth. USD, after some decline, may begin to grow, attracting investment. In this situation, the pair will be under pressure. The downward reversal from the key resistance levels of 1.3215, 1.3255, 1.3300 is possible.
Technical indicators point to further growth of the pair, MACD volumes of long positions have increased significantly, Bollinger bands are directed upwards.
Resistance levels: 1.3215, 1.3255, 1.3290, 1.3300, 1.3350, 1.3370.
Support levels: 1.3155, 1.3140, 1.3075, 1.3000, 1.2975, 1.2900, 1.2785.
Trading tips
It is relevant to increase the volumes of short positions from the levels of 1.3215, 1.3255, 1.3300 with the targets at 1.2900, 1.2785 and stop loss 1.3370.
GBP continues to rise against USD. During several trading weeks since the beginning of January, the GBP/USD pair has gained more than 800 points, and the upward momentum is still in force, despite the Brexit.
Strong data on the labor market, major indices and lending became one of the key catalysts for strengthening. It is possible that the additional influx of demand is due to the possibility that the government can change its mind upon the Brexit issue. However, in the event of a political crisis due to the opposites of the views of the Parliament and the British Prime Minister on the deal, a reversal and collapse of CBP are likely.
This week, special attention should be paid to statistics on lending and major indices in the UK. In the United States data on the labor market and the construction sector will be published.
Support and resistance
Last week, the pair finally left the downward range, breaking through the key resistance level of 1.3000, and the demand for GBP increased significantly. However, GBP does not have the strength and catalysts for significant further growth. USD, after some decline, may begin to grow, attracting investment. In this situation, the pair will be under pressure. The downward reversal from the key resistance levels of 1.3215, 1.3255, 1.3300 is possible.
Technical indicators point to further growth of the pair, MACD volumes of long positions have increased significantly, Bollinger bands are directed upwards.
Resistance levels: 1.3215, 1.3255, 1.3290, 1.3300, 1.3350, 1.3370.
Support levels: 1.3155, 1.3140, 1.3075, 1.3000, 1.2975, 1.2900, 1.2785.
Trading tips
It is relevant to increase the volumes of short positions from the levels of 1.3215, 1.3255, 1.3300 with the targets at 1.2900, 1.2785 and stop loss 1.3370.
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