GBP/USD: downtrend
22 July 2019, 14:16
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL |
| Entry Point | 1.2469 |
| Take Profit | 1.2270, 1.2200 |
| Stop Loss | 1.2590 |
| Key Levels | 1.1885, 1.2110, 1.2200, 1.2270, 1.2300, 1.2385, 1.2400, 1.2450, 1.2500, 1.2560, 1.2600, 1.2620, 1.2655, 1.2730, 1.2760, 1.2800 |
Current trend
The GBP/USD pair declines within the narrow range.
In the middle of the previous week, the price tested a local minimum, which is also the historical minimum of the beginning of the year. The price reversed and formed an upward correctional wave to the upper border of the channel (1.2560). At the end of the week, the decline resumed, today it is due to the trading sentiment: the poor fundamental background in the UK and the growth of investment attractiveness of USD.
In the first half of this week, there are no key releases in the economic calendar, and the movement will be influenced by trading sentiment. US data on economic growth rates and Durable Goods Orders will be published at the end of the trading week and will give impetus to the pair. Nevertheless, it is unlikely that it will be able to break down the historical minimum.
Support and resistance
In the short term, the pair will move within the sideways consolidation. Later, the breakdown of the local minimum of 1.2385 and the formation of a new downward wave with the targets at 1.2270, 1.2200 are predicted. In the long term, the decline may reach the levels of 1.2110, 1.1885 (the historical lows of the end of 2016). The dynamic is poor but the pair may continue to move within the downward trend.
Technical indicators on the daily chart and above confirm the forecast decline, the volumes of short positions MACD grow, and Bollinger bands are directed downwards.
Resistance levels: 1.2500, 1.2560, 1.2600, 1.2620, 1.2655, 1.2730, 1.2760, 1.2800.
Support levels: 1.2450, 1.2400, 1.2385, 1.2300, 1.2270, 1.2200, 1.2110, 1.1885.
Trading tips
Short positions can be opened from the current level with the targets at 1.2385, 1.2270, 1.2200 and stop loss 1.2590.
The GBP/USD pair declines within the narrow range.
In the middle of the previous week, the price tested a local minimum, which is also the historical minimum of the beginning of the year. The price reversed and formed an upward correctional wave to the upper border of the channel (1.2560). At the end of the week, the decline resumed, today it is due to the trading sentiment: the poor fundamental background in the UK and the growth of investment attractiveness of USD.
In the first half of this week, there are no key releases in the economic calendar, and the movement will be influenced by trading sentiment. US data on economic growth rates and Durable Goods Orders will be published at the end of the trading week and will give impetus to the pair. Nevertheless, it is unlikely that it will be able to break down the historical minimum.
Support and resistance
In the short term, the pair will move within the sideways consolidation. Later, the breakdown of the local minimum of 1.2385 and the formation of a new downward wave with the targets at 1.2270, 1.2200 are predicted. In the long term, the decline may reach the levels of 1.2110, 1.1885 (the historical lows of the end of 2016). The dynamic is poor but the pair may continue to move within the downward trend.
Technical indicators on the daily chart and above confirm the forecast decline, the volumes of short positions MACD grow, and Bollinger bands are directed downwards.
Resistance levels: 1.2500, 1.2560, 1.2600, 1.2620, 1.2655, 1.2730, 1.2760, 1.2800.
Support levels: 1.2450, 1.2400, 1.2385, 1.2300, 1.2270, 1.2200, 1.2110, 1.1885.
Trading tips
Short positions can be opened from the current level with the targets at 1.2385, 1.2270, 1.2200 and stop loss 1.2590.
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