Current trend
The GBP strengthened yesterday against the USD amid the release of the "hawkish" forecast of the Bank of England regarding monetary policy.
The regulator favorably assessed the possible GDP growth in the next two years, also stating the possibility of an earlier increase of rates. Having reached the level of 1.4037 at the peak yesterday, the pound could not hold positions after the release of positive for the dollar data on the employment sector: the reduction in the number of applications for unemployment benefits indicated the strength of the labor market, having supported the USD.
Nevertheless, today the pair's growth continued, and now the instrument is trading around the 1.3960 mark. The market expects publication of data on changes in the level of industrial production in the UK (12:30 GMT+2), where moderate volatility is expected.
Support and resistance
On the H4 chart, there is a correction of the downward movement, and the instrument demonstrates side movement within the narrow corridor formed by the borders of the Bollinger Bands. MACD histogram is in the negative zone keeping a signal for the opening of short positions.
Support levels: 1.3940, 1.3850, 1.3750.
Resistance levels: 1.4000, 1.4040, 1.4115, 1.4225, 1.4290.
Trading tips
Buy orders may be opened from the current level with the target at 1.4040 and stop-loss at 1.3930 mark. Implementation time: 1-3 days.
Short positions may be opened from the current level of 1.3820 with the target at 1.3750 and stop-loss at 1.3850. Implementation time: 3-5 days.
Great Britan vs US Dollar
Buy Sell Spread
1.39254 1.39228 26
Scenario
Timeframe Day's Range
Recommendations BUY
Entry Point 1.3981
Take Profit 1.4040
Stop Loss 1.3930
Support levels 1.3750, 1.3850, 1.3940, 1.4000, 1.4040, 1.4115, 1.4225, 1.4290
Alternative scenario
Recommendations SELL STOP
Entry Point 1.3820
Take Profit 1.3750
Stop Loss 1.3850
Support levels 1.3750, 1.3850, 1.3940, 1.4000, 1.4040, 1.4115, 1.4225, 1.4290
The GBP strengthened yesterday against the USD amid the release of the "hawkish" forecast of the Bank of England regarding monetary policy.
The regulator favorably assessed the possible GDP growth in the next two years, also stating the possibility of an earlier increase of rates. Having reached the level of 1.4037 at the peak yesterday, the pound could not hold positions after the release of positive for the dollar data on the employment sector: the reduction in the number of applications for unemployment benefits indicated the strength of the labor market, having supported the USD.
Nevertheless, today the pair's growth continued, and now the instrument is trading around the 1.3960 mark. The market expects publication of data on changes in the level of industrial production in the UK (12:30 GMT+2), where moderate volatility is expected.
Support and resistance
On the H4 chart, there is a correction of the downward movement, and the instrument demonstrates side movement within the narrow corridor formed by the borders of the Bollinger Bands. MACD histogram is in the negative zone keeping a signal for the opening of short positions.
Support levels: 1.3940, 1.3850, 1.3750.
Resistance levels: 1.4000, 1.4040, 1.4115, 1.4225, 1.4290.
Trading tips
Buy orders may be opened from the current level with the target at 1.4040 and stop-loss at 1.3930 mark. Implementation time: 1-3 days.
Short positions may be opened from the current level of 1.3820 with the target at 1.3750 and stop-loss at 1.3850. Implementation time: 3-5 days.
Great Britan vs US Dollar
Buy Sell Spread
1.39254 1.39228 26
Scenario
Timeframe Day's Range
Recommendations BUY
Entry Point 1.3981
Take Profit 1.4040
Stop Loss 1.3930
Support levels 1.3750, 1.3850, 1.3940, 1.4000, 1.4040, 1.4115, 1.4225, 1.4290
Alternative scenario
Recommendations SELL STOP
Entry Point 1.3820
Take Profit 1.3750
Stop Loss 1.3850
Support levels 1.3750, 1.3850, 1.3940, 1.4000, 1.4040, 1.4115, 1.4225, 1.4290