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GBP/USD: Downward Correction Is Expected

By Kristina LeonovaForexJul 17, 2017 10:38AM ET
GBP/USD: Downward Correction Is Expected
By Kristina Leonova   |  Jul 17, 2017 10:38AM ET
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The British currency continued to strengthen against USD in view of growing investors' interest to the pound. In the end of the previous trading week, the UK released positive data on the labor market increasing the demand that was already high.

At the same time, the rate of USD continued to fall in view of the negative fundamental background. Weak data on retail sales, labor market, consumer prices index and a number of other basic indexes had been released by the end of the previous week. All these factors gave the pair an opportunity to break through the strong resistance level and local maximum 1.3040 and to test the level of 1.3115.

The beginning of the current week is characterized by minor downward correction caused by fixing long positions at local maximums. Special attention during the week should be paid to the data on major indexes and retail sales in the UK.

The pair remains in the upward range and in the short term may move to the upper border of the upward channel — 1.3255. Long downward correction is expected later on in view of changes in trading tendencies and growth of demand for the weakened USD. Technical indicators continue to point out further growth: MACD shows the growth in the volume of long positions, and the upper line of Bollinger Bands on the weekly chart indicates the next target of the pair at 1.3255.

Support levels: 1.3040, 1.2990, 1.2950, 1.2890, 1.2830, 1.2770, 1.2620, 1.2560, 1.2500, 1.2365.

Resistance levels: 1.3115, 1.3155, 1.3200, 1.3255, 1.3300, 1.3370.

GBP/USD: Downward Correction Is Expected
GBP/USD: Downward Correction Is Expected

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Alexandros Spanos
Alexandros Spanos Jul 17, 2017 2:53PM GMT
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It looks like you read my yesterday's analysis  on trading view.Fully agreed..
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