GBP/USD: in February range

GBP/USD: in February range

21 February 2017, 08:24
Yuri Papshev

Trading recommendations

Sell Stop 1.2420. Stop-Loss 1.2480. Take-Profit 1.2400, 1.2365, 1.2250, 1.2135, 1.2000

Buy Stop 1.2480. Stop-Loss 1.2420. Take-Profit 1.2500, 1.2610, 1.2730, 1.22800, 1.2950


Technical analysis

All the February GBP/USD pair is moving in a range between the levels of 1.2365, 1.2656. With the opening of today's trading day, GBP/USD pair is trading near the balance and level of support line 1.2450 (EMA200 on 4-hour chart and the daily chart EMA50). Nevertheless, indicators OsMA and Stochastic on the 4-hour and daily charts are on the side of the sellers.

The price has broken the important support level 1.2470 (EMA200 on the 1-hour chart). If the support level of 1.2450 will also be passed, the decline in the pair GBP / USD accelerated. Reduction targets will then support levels 1.2365, 1.2250, 1.2135, 1.2000 (2017 lows).

GBP / USD pair continues to be under the influence of powerful negative fundamental factors - different directions of monetary policy in the United States and the United Kingdom, out of the EU.

The growth of GBP / USD pair may be associated with the release of the band and breakdown of the resistance level of 1.2565. In this case, the objectives of growth will be the levels 1.2730 (EMA144 on the daily chart), 1.2950 (EMA200), 1.3210 (23.6% Fibonacci level of the correction to reduce the pair GBP / USD in the wave that began in July 2014 near the level of 1.7200). GBP / USD pair then be able to return in a rising channel on the daily chart, the upper limit of which is held near the level of 1.2800.

So far, the negative dynamics of the GBP / USD pair dominates.

 Support levels: 1.2450, 1.2400, 1.2365, 1.2250, 1.2135, 1.2000

Resistance levels: 1.2470, 1.2500, 1.2565, 1.2610, 1.2730, 1.22800, 1.2950

 Author signals -

*)presented material expresses the personal views of the author and is not a direct guide to conduct trading operations.    

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