Technical data of the currency pair:

Previous closing: 1.4333;
Daily range: 1.4320-1.4356;
Opening: 1.4333;
52- week range: 1.3833-1.5930;
Annual revenue: -4.03%;
Change in % for the previous day: -0.39.Analytical review:
  • In the last three trading sessions the Pound has grown by over 250 points against the USD. During yesterday’s trading session the rally in the GBP was halted at the local resistance level of 11300.
  • Yesterday important British statistics was released, which showed that according to the number of initial applications for unemployment benefits has increased by 6700, while analysts expected the decline of 11300. Average wages level with bonuses has grown by 1.8% against market expectation of 2.3%.
  • The USD received support from the positive data on the housing secondary market. The index has grown by 5.1% up to 5.33 million houses against the forecast of 5.30 million houses.
  • “Commitments of Traders” show ambiguous picture. Large speculators have reduced the number of long positions by 6942 contracts. The number of short positions has been decreased by 12607 contracts.
  • The data of this week will include British retail sales volume (today), index of production activity as per Fed Philadelphia (today). This information may affect market volatility.
Summary:
  • Positive US macro-economic data, poor UK statistics and high volatility in the financial markets put strong pressure on the British currency. According to “COT” large investors do not have common opinion about the Pound.
  • Therefore, it is likely that the GBP will weaken against the USD. It is recommended to open short positions.
Trading tips for the currency pair GBP/USD
Medium-term trading: At the moment the currency has broken down the local support level of 1.4350. If the price maintains the mirrored resistance level of 1.4350 and in case of the respective confirmation (such as Price Action pattern), we recommend to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 1.4280, 1.4210 and 1.4150 with the use of trailing stops.


Short-term trading: on the chart with the timeframe 15M the currency is traded near supply zone 1.4350-1.4370. If the price maintains this zone we recommend to open short positions. Risk per trade is not more than 3% of capital. Stop order can be placed at the level of 1.4375. Take profit can be placed in parts at the levels of 1.4305, 1.4275 and 1.4250 with the use of trailing stop.
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