Current dynamics
This week the pair resumed its growth and is currently trading at the level of 1.3160.
The growth of the pound is supported by a number of external and internal factors. Investors hope to ease tensions between the United States and China after talks on the eve of the first phase of a trade deal that will boost the global economy. During the consultations, the parties noted the progress and confirmed their readiness to assist in the further implementation of the transaction. The market also hopes for a positive effect from the resumption of the educational process in the UK. After the opening of schools, citizens will not supervise their children and will start returning to work, which will serve as an incentive for economic recovery. However, in the medium term, the UK will continue to be unstable due to the deadlock in negotiations on a trade deal with the EU and the likelihood of a second wave of the coronavirus pandemic in the fall.
Support and resistance levels
The price tends to the upper border of the trading range at around 1.3183 (Murray [8/8]), a breakdown of which will give the prospect of growth to the levels of 1.3244 (Murray [+1/8]) and 1.3305 (Murray [+2/8]). If the instrument fixes below the middle line of Bollinger bands, the downward correction may develop to the level of 1.3060 (Murray [6/8]). The indicators show opposite signals: the Stochastic is turning down, the MACD histogram has moved into the positive zone.
Resistance levels: 1.3183, 1.3244, 1.3305.
Support levels: 1.3115, 1.3060.
Trading scripts
Long positions should be opened above 1.3183 with targets at 1.3244, 1.3305 and stop-loss at 1.3135.
Short positions can be opened below the level of 1.3115 with the target at 1.3060 and stop-loss at 1.3150.
Implementation period: 4-5 days.
Scenario
Timeframe Weekly
BUY STOP recommendations
Entry point 1.3185
Take Profit 1.3244, 1.3305
Stop Loss 1.3135
Key levels 1.3060, 1.3115, 1.3183, 1.3244, 1.3305
Alternative scenario
SELL STOP recommendations
Entry point 1.3110
Take Profit 1.3060
Stop Loss 1.3150
Key levels 1.3060, 1.3115, 1.3183, 1.3244, 1.3305
