GBP/USD: review and forecast on 02.07.2015

July 2, 2015

Current trend

During the last 2 days, the pair GBP/USD fell by more than 150 points to the level of 1.5600. However, investors may soon get interested in the pair again and that would lead to its volatility increase.

A prerequisite to it is the richness of today’s economic calendar. PMI Construction data in the UK is due at 11:30 am (GMT +3) and if the figure matches its forecasts that would strengthen the GBP. Latest data from the US Department of Labor is due at 3:30 pm (GMT +3) and the forecasts are rather negative for the USD.

Thus, the likeliest direction of the pair is upwards.

Support and resistance

On the chart, the Bollinger bands are widening. Yesterday the pair was trading below the lower band but returned inside since and is now trading above the bottom MA. The picture can be interpreted as the formation of the upward trend before long, which is supported by the fundamental analysis.

The nearest resistance level is at 1.5690 (middle MA of Bollinger Bands).

Support level: 1.5590 (bottom MA of Bollinger Bands).

Trading tips

Open long positions above 1.5620 and switch trailing stop on after 1.5690. Opposite movement is unlikely today and thus is not considered.

Publication source
LiteForex information  LiteForex reviews

September 23, 2016
Gold rises to critical level on lower-for-longer policy signals
The price of gold extended its rebound modestly on Thursday after the US Federal Reserve provided some key signals on Wednesday that, despite a considerable probability of one Fed rate hike by the end of this year...
September 22, 2016
Moving on from the Fed
The reaction seen in currency markets yesterday to respective central bank policy decisions was instructive of the change in dynamics that we’re seeing. The BoJ enacted a number of changes to its policy regime...
September 21, 2016
Bank of Japan runs out of road
The Bank of Japan delivered a whole heap of nothing at its policy meeting today, although some adjustments were made to its policy framework. If you take the time to read through these measures, then the impression is of a central bank that has largely lost the monetary plot...

OANDA Rating
Orbex Rating
XM Rating
FOREX.com Rating
FIBO Group Rating
Grand Capital Rating

Beeoptions Rating
24option Rating
OptionTrade Rating
OptionRally Rating
Anyoption Rating
Grand Option Rating