GBP/USD: general review
29 June 2020, 12:05
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 1.2325 |
| Take Profit | 1.2207, 1.2085 |
| Stop Loss | 1.2410 |
| Key Levels | 1.2085, 1.2207, 1.2330, 1.2451, 1.2573, 1.2693 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 1.2455 |
| Take Profit | 1.2573, 1.2693 |
| Stop Loss | 1.2360 |
| Key Levels | 1.2085, 1.2207, 1.2330, 1.2451, 1.2573, 1.2693 |
Current trend
Last week, the pair showed ambiguous dynamics. The price rose to 1.2540 (the center line of the Bollinger Bands), but then rolled back to its original position to 1.2330 (Murrey [5/8]). Today, GBP is trying to strengthen against the background of the comments of Prime Minister Boris Johnson, who announced that the government intends to spend billions of pounds to support the economy, primarily through infrastructure projects, the construction of new roads, schools and hospitals. The first part of the plan is to allocate 1B pounds to 50 major school construction projects over the next 10 years, and another 560M pounds to repair existing school facilities. Other details of the economy recovery program will be announced tomorrow. However, plans to inject funds are unlikely to support GBP in the short term, as the current state of the British economy is still poor. UK GDP data for Q1 2020 will be released tomorrow, which may confirm its reduction of 2.0%.
Support and resistance
The price is testing 1.2330 (Murrey [5/8]), the breakdown of which will give the prospect of decline to 1.2207 (Murrey [4/8]) and 1.2085 (Murrey [3/8]). The key for the “bulls” is 1.2451 (Murrey [6/8]). In case of consolidation above it, the price will be able to continue rising to 1.2573 (Murrey [7/8]) and 1.2693 (Murrey [8/8]). Technical indicators confirm the possibility of decline. MACD histogram moved to the negative zone and formed a sell signal. Stochastic is directed downwards.
Resistance levels: 1.2451, 1.2573, 1.2693.
Support levels: 1.2330, 1.2207, 1.2085.
Trading tips
Short positions may be opened after the price consolidates below 1.2330 with targets at 1.2207, 1.2085 and stop-loss at 1.2410.
Long positions may be opened above 1.2451 with targets at 1.2573, 1.2693 and stop-loss at 1.2360.
Implementation time: 4-5 days.
Last week, the pair showed ambiguous dynamics. The price rose to 1.2540 (the center line of the Bollinger Bands), but then rolled back to its original position to 1.2330 (Murrey [5/8]). Today, GBP is trying to strengthen against the background of the comments of Prime Minister Boris Johnson, who announced that the government intends to spend billions of pounds to support the economy, primarily through infrastructure projects, the construction of new roads, schools and hospitals. The first part of the plan is to allocate 1B pounds to 50 major school construction projects over the next 10 years, and another 560M pounds to repair existing school facilities. Other details of the economy recovery program will be announced tomorrow. However, plans to inject funds are unlikely to support GBP in the short term, as the current state of the British economy is still poor. UK GDP data for Q1 2020 will be released tomorrow, which may confirm its reduction of 2.0%.
Support and resistance
The price is testing 1.2330 (Murrey [5/8]), the breakdown of which will give the prospect of decline to 1.2207 (Murrey [4/8]) and 1.2085 (Murrey [3/8]). The key for the “bulls” is 1.2451 (Murrey [6/8]). In case of consolidation above it, the price will be able to continue rising to 1.2573 (Murrey [7/8]) and 1.2693 (Murrey [8/8]). Technical indicators confirm the possibility of decline. MACD histogram moved to the negative zone and formed a sell signal. Stochastic is directed downwards.
Resistance levels: 1.2451, 1.2573, 1.2693.
Support levels: 1.2330, 1.2207, 1.2085.
Trading tips
Short positions may be opened after the price consolidates below 1.2330 with targets at 1.2207, 1.2085 and stop-loss at 1.2410.
Long positions may be opened above 1.2451 with targets at 1.2573, 1.2693 and stop-loss at 1.2360.
Implementation time: 4-5 days.
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