GBP/USD pair fell by more than 1.2%

26 September, 2019

Yesterday, the GBP/USD pair fell by more than 1.2% amid Brexit uncertainty. The chances of next UK elections grow, so the bilateral agreement will take more time.

USD grows despite the US political risks. The likelihood of Donald Trump’s impeachment is extremely low since Republicans have the majority in the Senate, however, domestic and external political problems create enormous risks for the American economy. The idea of ​​an interim deal with China has been under discussion for two months now. Trump has repeatedly made positive statements regarding it, diverting attention from the political and financial situation but it is now becoming clear that the US-China conflict is hurting world exports, according to data from the Netherlands Bureau for Economic Policy Analysis.

Today, the US GDP is due at 14:30 (GMT+2). At 15:45 (GMT+2), traders await the speech of BOE head Mark Carney. He may confirm the "hawkish" position, which will restore the pair. At 15:30 and 16:00 (GMT+2), Fed officials Robert Kaplan and James Bullard will speak, and at 16:00 (GMT+2) Pending Home Sales will be released.

Support and resistance

On a 4-hour chart, the instrument declines along the lower border of Bollinger bands. The indicator is directed downwards, and the price range expanded, indicating a further fall. MACD is in the negative zone, keeping a strong sell signal. Stochastic entered the oversold zone; a strong buy signal may form within 1–2 days.

  • Resistance levels: 1.2377, 1.2425, 1.2477, 1.2518, 1.2584.
  • Support levels: 1.2305, 1.2238, 1.2168.

Trading tips

  • Short positions can be opened below 1.2290 with the targets at 1.2170, 1.2100 and stop loss 1.2385. Implementation period: 1–3 days.
  • Long positions can be opened above 1.2395 with the target at 1.2450 and stop loss 1.2370. Implementation period: 1–2 days.

Source   Presented by BCS Forex
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