empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

10.08.201815:54 Forex Analysis & Reviews: GBP / USD. 10th of August. The results of the week. What can stop the fall of the British currency?

Long-term review
This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

4-hour timeframe

Exchange Rates 10.08.2018 analysis

Amplitude of the last 5 days (high-low): 68p - 93p - 50p - 106p - 92p.

The average amplitude for the last 5 days is 82n (86p).

If the European currency at the beginning of the week slightly adjusted, the pound sterling fell down the whole trading week. The chance for the pound sterling was macroeconomic reports, which came out literally half an hour ago. However, as we can see now, they did not have a significant impact on the mood of traders. The preliminary value of GDP for the second quarter was 1.3%, and UK industrial production grew by 0.4% in monthly terms. Both indicators fully coincided with the forecast values. Thus, the last chance for the British currency this week will be the publication of inflation in the US. But, frankly, there is very little hope for this report either. First, in order to cause profit-taking on dollar positions, it is necessary for the report to fail. Secondly, even if the first condition is met, it is not a fact that traders will react to it. Thus, most likely, the pound sterling will remain in the downward movement until next week. And next week will be published changes in retail trade and inflation, which are important indicators of the state of the economy and can affect the pound sterling. Although much more important will be the new performances of Donald Trump regarding trade restrictions for US partners and the promotion (or lack thereof) in negotiations with the EU on Brexit.

Trading recommendations:

The GBP / USD currency pair has almost completed the support level of 1.2730. Around this level or 1.2696, a reversal may occur, but there are no fundamental reasons for this yet. Thus, ideally, upon reaching these marks, you can record profits on short positions.

Long positions are now not recommended, since the downward movement is quite strong, and there are still no signs of an upward correction beginning.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations to the illustration:

Ichimoku Indicator:

Tenkan-sen is a red line.

Kijun-sen is a blue line.

Senkou Span A is a light brown dotted line.

Senkou Span B - a light purple dotted line.

Chinkou Span is a green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD indicator:

Red line and histogram with white bars in the indicator window.

Paolo Greco
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off