GBP/USD: the pound is corrected
30 January 2019, 09:33
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 1.3145 |
| Take Profit | 1.3216, 1.3240 |
| Stop Loss | 1.3100 |
| Key Levels | 1.2882, 1.2929, 1.3000, 1.3054, 1.3100, 1.3139, 1.3173, 1.3216 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.3050 |
| Take Profit | 1.2929, 1.2900, 1.2882 |
| Stop Loss | 1.3120 |
| Key Levels | 1.2882, 1.2929, 1.3000, 1.3054, 1.3100, 1.3139, 1.3173, 1.3216 |
Current trend
EUR showed a steady decline against USD on Tuesday, continuing the development of a "bearish" impetus formed the day before. Yesterday, investors were focused on the vote on a deal with the EU in the British Parliament.
As expected, MPs voted with a confident majority against the unregulated Brexit and adopted two amendments. Now Theresa May intends to achieve concessions in the issue of the Irish border in Brussels, and then hold a vote in the British Parliament on February 13.
The UK exit from the EU is scheduled for March 29, 2019. The main parameters of the Brexit deal were agreed upon by Brussels after 18 months of difficult negotiations. However, on January 15, the British Parliament rejected Theresa May’s Brexit plan, and opposition leaders even tried to initiate a vote of no confidence in the government.
Support and resistance
Bollinger Bands in D1 chart show stable growth. The price range is narrowed from above, reflecting a sharp change of direction of trading. MACD reversed downwards having formed a weak sell signal (located below the signal line). Stochastic shows similar dynamics, retreating from its highs, indicating the overbought pound.
Consider possibility of further development of the "bearish" trend in the short term.
Resistance levels: 1.3100, 1.3139, 1.3173, 1.3216.
Support levels: 1.3054, 1.3000, 1.2929, 1.2882.
Trading tips
To open long positions, one can rely on the breakout of 1.3139. Take profit — 1.3216 or 1.3240. Stop loss — 1.3100. Implementation period: 1-2 days.
A confident breakdown of the level of 1.3054 may be a signal to further sales with targets at 1.2929, 1.2900 or 1.2882. Stop loss — 1.3120. Implementation period: 2-3 days.
EUR showed a steady decline against USD on Tuesday, continuing the development of a "bearish" impetus formed the day before. Yesterday, investors were focused on the vote on a deal with the EU in the British Parliament.
As expected, MPs voted with a confident majority against the unregulated Brexit and adopted two amendments. Now Theresa May intends to achieve concessions in the issue of the Irish border in Brussels, and then hold a vote in the British Parliament on February 13.
The UK exit from the EU is scheduled for March 29, 2019. The main parameters of the Brexit deal were agreed upon by Brussels after 18 months of difficult negotiations. However, on January 15, the British Parliament rejected Theresa May’s Brexit plan, and opposition leaders even tried to initiate a vote of no confidence in the government.
Support and resistance
Bollinger Bands in D1 chart show stable growth. The price range is narrowed from above, reflecting a sharp change of direction of trading. MACD reversed downwards having formed a weak sell signal (located below the signal line). Stochastic shows similar dynamics, retreating from its highs, indicating the overbought pound.
Consider possibility of further development of the "bearish" trend in the short term.
Resistance levels: 1.3100, 1.3139, 1.3173, 1.3216.
Support levels: 1.3054, 1.3000, 1.2929, 1.2882.
Trading tips
To open long positions, one can rely on the breakout of 1.3139. Take profit — 1.3216 or 1.3240. Stop loss — 1.3100. Implementation period: 1-2 days.
A confident breakdown of the level of 1.3054 may be a signal to further sales with targets at 1.2929, 1.2900 or 1.2882. Stop loss — 1.3120. Implementation period: 2-3 days.
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