Published On: Mon, May 1st, 2017

GBP/USD: general review

InstaForex

Current trend

The pair GBP/USD demonstrated considerable growth in the end of the previous week ignoring negative statistics on UK GDP for Q1 2017. The growth of the indicator made up 0.3% in quarterly and 2.1% in YoY terms which was lower than expected. Annual GDP data increased by 0.7% which is 1.2% lower than forecast. Currently the pair is correcting around the level of 1.2900.

Today traders should pay attention to news from the USA, namely release of the data on changes in personal income and expenditure. According to initial forecasts, ISM Manufacturing is about to drop by 0.7% which may negatively impact USD in the short period causing market volatility. However generally the values of the indicator above 50 points is considered a positive factor for US dollar.

Support and resistance

On D1 chart the pair is moving along the upper border of Bollinger Bands. MACD histogram is in the positive area and gaining volumes. The signal line is crossing the body of the histogram from below giving a signal for opening long positions.

Support levels: 1.2900, 1.2850, 1.2780, 1.2700, 1.2600, 1.2550, 1.2500.

Resistance levels: 1.2950, 1.3000.

Trading tips

Long positions may be opened from the level of 1.2965 with targets at 1.3050 and stop-loss at 1.2920.

Short positions may be opened from the level of 1.2900 with targets at 1.2850 and stop-loss at 1.2930.

The period of implementation is 1-3 days.

Forex Analysis

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