Current trend
The rate of GBP/USD attempted to grow yesterday movin away from the support level of 1.2768 but met resistance at 1.2920. After downward correction to the level of the middle line of Bollinger Bands (1.2840) the rate, according to technical indicators, is ready to try the resistance level of 1.2920 once again. Bollinger Bands are pointing upwards. MACD histogram is in positive zone, its volume is increasin, indicating that there still is growth potential. Breaking through the level of 1.2920 and consolidation above it will be the indication for the continuation of growth. In this case growth will continue to 1.2975. If the sellers take the initiative and drop the rate below the lower line of Bollinger Band (1.2840), the fall will continue to 1.2768.
Today's highlights among macroeconomic releases come from the USA. ADP report on the level of employment in the private sector is due at 14:15 (GMT+2), and information on initial jobless claims for the week — at 14:30 (GMT+2). Today's statistics hints at tomorrow's official data on the number of new nonfarm payrolls (14:30 GMT+2). If the data appears to be better than forecasts, the pair GBP/USD will get under pressure in the short term. The main focus for the investors will be tomorrow's data on the US labor market. This data is extremely important for the market, as FOMC takes them into account when increasing the interest rate. For the regulator to increase the interest rate at its June meeting, tomorrow's labor market statistics should be better than expected.
Support and resistance
Support levels: 1.2840, 1.2810, 1.2768.
Resistance levels: 1.2920, 1.2975, 1.3042.
Trading tips
Sell positions may be opened below 1.2840 with targets at 1.2810, 1.2768 and stop-loss at 1.2865.
Buy positions may be opened above 1.2910 with targets at 1.2975 and stop-loss at 1.2985.
The rate of GBP/USD attempted to grow yesterday movin away from the support level of 1.2768 but met resistance at 1.2920. After downward correction to the level of the middle line of Bollinger Bands (1.2840) the rate, according to technical indicators, is ready to try the resistance level of 1.2920 once again. Bollinger Bands are pointing upwards. MACD histogram is in positive zone, its volume is increasin, indicating that there still is growth potential. Breaking through the level of 1.2920 and consolidation above it will be the indication for the continuation of growth. In this case growth will continue to 1.2975. If the sellers take the initiative and drop the rate below the lower line of Bollinger Band (1.2840), the fall will continue to 1.2768.
Today's highlights among macroeconomic releases come from the USA. ADP report on the level of employment in the private sector is due at 14:15 (GMT+2), and information on initial jobless claims for the week — at 14:30 (GMT+2). Today's statistics hints at tomorrow's official data on the number of new nonfarm payrolls (14:30 GMT+2). If the data appears to be better than forecasts, the pair GBP/USD will get under pressure in the short term. The main focus for the investors will be tomorrow's data on the US labor market. This data is extremely important for the market, as FOMC takes them into account when increasing the interest rate. For the regulator to increase the interest rate at its June meeting, tomorrow's labor market statistics should be better than expected.
Support and resistance
Support levels: 1.2840, 1.2810, 1.2768.
Resistance levels: 1.2920, 1.2975, 1.3042.
Trading tips
Sell positions may be opened below 1.2840 with targets at 1.2810, 1.2768 and stop-loss at 1.2865.
Buy positions may be opened above 1.2910 with targets at 1.2975 and stop-loss at 1.2985.