LiteForex analitics. GBP/USD: general analysis
Current trend
Yesterday the pair tried to enter the upward correction. It is now trading around 1.3960. The pound is supported by a reduction in public sector borrowing. In March, the indicator was –0.262 billion pounds. Thus, Chancellor Hammond continues the policy of reducing government spending and borrowing, which began after the referendum on Brexit.
The investors are focused on Brexit negotiations. The main discussion goes within the British government and the Parliament, which is persuading Theresa May to let the UK stay in the Customs Union, while a number of key ministers, including David Davis and Boris Johnson, insists on the immediate leaving it. Today Brexit Minister Davis again claimed that after leaving Customs Union, UK will benefit a lot and can increase the country’s share in the world trade. He also noted that after the end of Brexit process, a number of bilateral trade agreements can be made with different counties, for example, with Canada.
Support and resistance
Technical picture is mixed. In case of the breakdown of the level of 1.3916 (Murray [2/8]), the price can fall to the levels of 1.3793 (Murray [1/8]) and 1.3671 (Murray [0/8]), which is confirmed by MACD, ready to enter the negative zone, and Bollinger Bands, reversing downwards. However, Stochastic is reversing in the oversold area, so a correction can develop to the middle line of Bollinger Bands to the area of 1.4090 or 1.4160 (Murray [4/8]).
Resistance levels: 1.4090, 1.4160.
Support levels: 1.3916, 1.3793, 1.3671.
Trading tips
Long positions can be opened at the level of 1.4000 with the targets at 1.4090 and 1.4160 and stop loss near the level of 1.3960.
Short positions can be opened below the level of 1.3916 with the targets at 1.3793, 1.3671 and stop loss around 1.3950.
Current trend
Yesterday the pair tried to enter the upward correction. It is now trading around 1.3960. The pound is supported by a reduction in public sector borrowing. In March, the indicator was –0.262 billion pounds. Thus, Chancellor Hammond continues the policy of reducing government spending and borrowing, which began after the referendum on Brexit.
The investors are focused on Brexit negotiations. The main discussion goes within the British government and the Parliament, which is persuading Theresa May to let the UK stay in the Customs Union, while a number of key ministers, including David Davis and Boris Johnson, insists on the immediate leaving it. Today Brexit Minister Davis again claimed that after leaving Customs Union, UK will benefit a lot and can increase the country’s share in the world trade. He also noted that after the end of Brexit process, a number of bilateral trade agreements can be made with different counties, for example, with Canada.
Support and resistance
Technical picture is mixed. In case of the breakdown of the level of 1.3916 (Murray [2/8]), the price can fall to the levels of 1.3793 (Murray [1/8]) and 1.3671 (Murray [0/8]), which is confirmed by MACD, ready to enter the negative zone, and Bollinger Bands, reversing downwards. However, Stochastic is reversing in the oversold area, so a correction can develop to the middle line of Bollinger Bands to the area of 1.4090 or 1.4160 (Murray [4/8]).
Resistance levels: 1.4090, 1.4160.
Support levels: 1.3916, 1.3793, 1.3671.
Trading tips
Long positions can be opened at the level of 1.4000 with the targets at 1.4090 and 1.4160 and stop loss near the level of 1.3960.
Short positions can be opened below the level of 1.3916 with the targets at 1.3793, 1.3671 and stop loss around 1.3950.