GBP/USD: general analysis
GBP/USD: general analysis
22 January 2019, 14:39
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 1.2870 |
| Take Profit | 1.2817, 1.2770 |
| Stop Loss | 1.2910 |
| Key Levels | 1.2695, 1.2770, 1.2817, 1.2940, 1.3060 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 1.2945 |
| Take Profit | 1.3060 |
| Stop Loss | 1.2900 |
| Key Levels | 1.2695, 1.2770, 1.2817, 1.2940, 1.3060 |
Current trend
The GBP/USD pair started the week with growth and is now trading at 1.2915 (Fibonacci correction 23.6%).
On Monday, Prime Minister Theresa May presented a backup action plan for Brexit. However, it is not much different from the original, rejected by parliament. May proposed to seek further concessions from the EU on the Irish border and rejected the possibility of a second referendum again. The implementation of this plan is doubtful since the EU authorities have repeatedly stated that they will not change the terms of the deal. With the threat of a tight Brexit, the British government can cancel the action of Article 50, which encourages investors.
GBP is supported by strong data from the UK labor market. November Average Earning including Bonus (3 m/g) increased by 3.4%, exceeding market expectations (3.3%) and the inflation rate, and reached a ten-year maximum. The unemployment rate fell from 4.1% to 4.0% in November.
Support and resistance
Now the price is testing the support zone of 1.2915 (Fibonacci 23.6%) – 1.2940 (Murrey [6/8]). If the instrument consolidates above it, the rate may rise to the level of 1.3060 (Murrey [7/8]). However, the downward reversal of Stochastic and its exit from the overbought zone suggest the possibility of a correction to the levels of 1.2817 (Murrey [5/8]) and 1.2770 (the middle line of Bollinger bands).
Resistance levels: 1.2940, 1.3060.
Support levels: 1.2817, 1.2770, 1.2695.
Trading tips
Short positions can be opened from the level of 1.2870 with the targets at 1.2817, 1.2770 and stop loss around 1.2910.
Long positions can be opened above the level of 1.2940 with the target at 1.3060 and stop loss 1.2900.
Implementation period: 4–7 days.
The GBP/USD pair started the week with growth and is now trading at 1.2915 (Fibonacci correction 23.6%).
On Monday, Prime Minister Theresa May presented a backup action plan for Brexit. However, it is not much different from the original, rejected by parliament. May proposed to seek further concessions from the EU on the Irish border and rejected the possibility of a second referendum again. The implementation of this plan is doubtful since the EU authorities have repeatedly stated that they will not change the terms of the deal. With the threat of a tight Brexit, the British government can cancel the action of Article 50, which encourages investors.
GBP is supported by strong data from the UK labor market. November Average Earning including Bonus (3 m/g) increased by 3.4%, exceeding market expectations (3.3%) and the inflation rate, and reached a ten-year maximum. The unemployment rate fell from 4.1% to 4.0% in November.
Support and resistance
Now the price is testing the support zone of 1.2915 (Fibonacci 23.6%) – 1.2940 (Murrey [6/8]). If the instrument consolidates above it, the rate may rise to the level of 1.3060 (Murrey [7/8]). However, the downward reversal of Stochastic and its exit from the overbought zone suggest the possibility of a correction to the levels of 1.2817 (Murrey [5/8]) and 1.2770 (the middle line of Bollinger bands).
Resistance levels: 1.2940, 1.3060.
Support levels: 1.2817, 1.2770, 1.2695.
Trading tips
Short positions can be opened from the level of 1.2870 with the targets at 1.2817, 1.2770 and stop loss around 1.2910.
Long positions can be opened above the level of 1.2940 with the target at 1.3060 and stop loss 1.2900.
Implementation period: 4–7 days.
Post a Comment