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Message: [QUOTE="TifiaFX, post: 129379, member: 41220"] [b][B]GBP/USD: on the eve of parliamentary elections[/B] [B]05/06/2017[/B] [B]Current dynamics[/B][/b] The PMI index (or the index of business activity) for the UK services sector in May was 53.8 (the forecast was 55.0, which is lower than the April index of the index 55.8). This index is an indicator of the economic situation in the service sector of Great Britain. The PMI of the UK service sector does not have such a strong impact on GDP as PMI in the manufacturing sector or the level of retail sales and consumer activity in the UK. At the same time, the decline in the PMI index for the service sector negatively affects the British currency. After the publication (08:00 GMT) of this index, the pound declined in the foreign exchange market. Nevertheless, the GBP / USD pair closed its sharp decline (with a gap of 30 points after the next terrorist act in Great Britain last weekend) during today's European session at the opening of today's trading day. Against the backdrop of the weakening dollar, the GBP / USD pair remains positive ahead of the June 8 elections to the UK Parliament. As you know, in mid-April, British Prime Minister Theresa May unexpectedly announced early parliamentary elections to ensure the dominant position of the Conservative Party in Parliament. It is likely that in these 3 days before the election to the UK Parliament the frequency of various sociological polls of the country's population will increase, which will cause an increase in the volatility in the pound trades. The elections, which will be held in the UK on June 8, attract the attention of investors. In the case of a significant advantage of conservatives in parliament, British Prime Minister Theresa May will probably be able to agree with the EU on more favorable conditions for Brexit. If this happens, then the pound may significantly strengthen in the foreign exchange market. This Thursday also will be a meeting of the European Central Bank on monetary policy, and next week will be a meeting of the Fed. It is widely expected that the Fed will raise the rate by 0.25% to 1.25%. Nevertheless, the dollar remains under pressure in the foreign exchange market. Probably, all the same, that the risks associated with the implementation of the new economic policy of President Donald Trump, as well as his statements about the desirability of a cheaper dollar, outweigh the sellers of the dollar. Thus, if conservatives manage to get a convincing majority in the June 8 elections, then the GBP / USD pair can significantly strengthen. Otherwise, the pound and GBP / USD pair are expected to weaken in the foreign exchange market. In any case, this week, especially on the eve of June 8, the pound is expected to have increased volatility with sharp movements in both directions. [B]Support and resistance levels[/B] The GBP / USD pair is currently trading near the balance line and the level of 1.2885, through which the 200-period moving average passes on the 1-hour chart. The GBP / USD pair keeps positive dynamics, trading in the uplink on the daily chart, above the key support levels of 1.2840 (EMA200 on the 4-hour chart), 1.2800 (EMA200 and the bottom line of the rising channel on the daily chart). Indicators OsMA and Stochastics on the 1-hour, 4-hour, daily charts went to the side of buyers. In case of breakdown of the local resistance level 1.2925, the pair GBP / USD growth will resume, and the GBP / USD pair will go to the resistance levels 1.3050 (May highs), 1.3210 (Fibonacci level 23.6% correction to the GBP / USD decline in the wave, which began in July 2014 near the level of 1.7200). In the case of breakdown of the support level 1.2800 and further reduction in support, the level will be 1.2700 (EMA144 on the daily chart). Further GBP / USD dynamics will in many respects be determined by the dynamics of the dollar and the comments of the Fed, which will be sounded on June 14, after the decision on the interest rate in the US is made. [b][B]Support levels: 1.2885, 1.2840, 1.2800, 1.2760, 1.2700, 1.2680, 1.2590, 1.2485, 1.2340, 1.2110[/B] [B]Resistance levels: 1.2925, 1.3000, 1.3050, 1.3100, 1.3210[/B] [B]Trading Scenarios[/B][/b] Sell Stop 1.2855. Stop-Loss 1.2910. Take-Profit 1.2840, 1.2800, 1.2760, 1.2700, 1.2680, 1.2590, 1.2485, 1.2340, 1.2110 Buy Stop 1.2910. Stop-Loss 1.2855. Take-Profit 1.2925, 1.3000, 1.3050, 1.3100, 1.3210 [img]https://s25.postimg.org/570wgazov/050617-_GU-h4.png[/img] [img]https://s25.postimg.org/4g86aixbj/050617-_GU-d.png[/img] [/QUOTE]

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