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Once again, welcome dear traders!
In this article, as you have already understood, we will talk about the pound-dollar currency pair. As usual, the focus will be on the technical component.
Nevertheless, let me remind you of the macroeconomic reports that may affect the price dynamics of this currency pair today or tomorrow.
So, today at 14:30 (London time), data on initial applications for unemployment benefits will come from the US. Tomorrow, the States will report on the index of business activity in the manufacturing and services sector from Markit.
No statistics are expected from the UK today, but tomorrow we will find out how things are with the PMI manufacturing activity index, as well as the PMI in the services sector. All additional information about these and other events can be easily found in the economic calendar. This is probably all, and we can move on to the technical part of the review.
Weekly
Although today is not yet Monday, I consider it necessary to demonstrate the weekly timeframe and consider options for closing the current five-day period. As you can see, the stumbling block for further strengthening of the pair is the Tenkan line of the Ichimoku indicator, which is located at 1.3170.
Closing the week above Tenkan will increase the chances of further movement of GBP/USD in the north direction. If the pound bulls manage to close the weekly session above the resistance of 1.3282, this will become an even stronger signal for further growth.
The downward trend scenario is signaled by the closing of the current weekly candle below the previous minimum values at 1.2953. In this case, the pair is likely to be under the control of the bears in the future.
Daily
On the daily chart, the situation is no less interesting and important. To confirm the seriousness of their intentions, players need to display the price up from the Ichimoku indicator cloud. But it's not just to withdraw, but to be fixed above the upper boundary of the cloud. This is extremely important!
We see that the bulls are currently trying to make such attempts on the pair. We will find out what will happen in the end only after the closing of weekly trading. In the meantime, it is worth noting that the upper border of the cloud passes near 1.3223, and this mark can play the role of fairly strong resistance.
At the moment, the nearest resistance is represented by yesterday's highs at 1.3150, and support is at the familiar technical level of 1.3047. It should be noted that in addition to the level itself, the 50 simple moving average and the Tenkan line are located here, which will certainly strengthen the already strong level of 1.3047.
The further support level is located at the already mentioned mark of 1.2953.
H1
On the hourly chart, the pound-dollar is trading in the range of 1.3150-1.3095. It can be assumed that the further direction of GBP/USD will be determined depending on which direction the price goes out of this range. At the moment, 50 MA provides good support for the pair. This moving average actively turns up behind the price. However, both 89 and 200 exponential moving averages are a little slower, but they also turn up behind the course.
In my personal opinion, there is more chance of an upward trend scenario and a breakdown of the sellers' resistance at 1.3150. However, buying under resistance is not the best trading idea.
In my opinion, it is less risky to wait for the breakout of 1.3150, fixing above this level, and open long positions on the pound on the rollback to it. For those who use the breakout strategy, you can try to buy directly on the breakout of the resistance at 1.3150. However, do not forget that often breakouts are false, so I consider this positioning riskier. However, you decide.
Good luck and big profits!
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