GBP/USD consolidating after growth

2 January, 2019

  • Prev Open: 1.26916
  • Open: 1.27172
  • % chg. over the last day: +0.28
  • Day's range: 1.27100 – 1.27727
  • 52 wk range: 1.2477 – 1.4378

GBP/USD is consolidating after a sudden growth during the current week. The pound is testing the key support and resistance levels: 1.27350 and 1.27700. The trading instrument has prospects for further recovery. We expect important stats on the UK economy. Positions should be opened from the key levels.

At 11:30 (GMT+2:00) the UK will publish a report on the business activity in the industrial sector.

The price fixed above 50 MA and 200 MA which points toward the power of the buyers.

The MACD histogram is in the positive zone but below the signal line, which gives a weak signal to purchase EUR/USD.

The Stochastic Oscillator is in the neutral zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations

  • Support levels: 1.27350, 1.27000, 1.26700
  • Resistance levels: 1.27700, 1.28000

If the price fixes above 1.27700, expect further growth of the EUR/USD quotes. The movement will tend toward 1.28000-1.28300.

Alternatively, the currency pair can descend toward 1.27000.


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