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Old 07-06-2018, 12:27
MikhailLF MikhailLF is offline
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Join Date: Sep 2017
Posts: 823
Default Re: Forex News Analysis by LiteForex

LiteForex analitics. GBP/USD: general analysis

Current trend

The pair is influenced by contradictory factors. On the one hand, positive British Service, Manufacturing, and Construction PMI inspired the investors and gave hopes for reduction of BoE monetary stimulus. On the other hand, Brexit situation is incurring significant risks for the British economy. In general, business is preparing for hard times. Representatives of major European and British companies have warned Prime Minister Theresa May about a possible reduction in investment, which would cause a reduction in jobs number.
The lack of a compromise upon Brexit in the British government worsens the situation. Recently, Theresa May proposed to leave the UK in the EU United Customs zone temporary, which would let avoid the physical borders in Ireland. However, this plan has raised objections from a number of ministers, including David Davis, Boris Johnson, and Liam Fox, who insisted that the UK's stay within the customs union should be limited to a specific unmovable deadline.

Support and resistance

Technically, the pair has been growing for two weeks but was corrected to the midline of Bollinger bands. In the case of a breakdown below the level of 1.3366 (Murray [6/8]), a further decline to the level of 1.3300 (Murray [4/8]) is possible, which is confirmed by indicators: Stochastic reversed downwards, MACD decreases in the positive zone. The key "bullish" level is 1.3427 (Murray [0/8]). In case of the breakout, the price can grow to 1.3488 (Murray [+2/8]), 1.3540.
Resistance levels: 1.3427, 1.3488.
Support levels: 1.3366, 1.3300.

Trading tips

Short positions can be opened below the level of 1.3366 with the target at 1.3300 and a stop loss around 1.3400.
Long positions can be opened above the level of 1.3427 with the targets at 1.3488, 1.3540 and stop loss 1.3390.
Implementation period: 3–5 days.

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