Current trend
On Friday, GBP strengthened against USD after the release of ambiguous US statistics. A negative factor for USD was the slowdown in the growth of Nonfarm Payrolls: in September, the figure reached 134K against the forecast of 185K and last month’s figure of 270K. However, the increase in the unemployment rate was 3.7%, which was below the forecast of 3.8% and the previous figure of 3.9% and had a positive effect on the currency.
GBP was supported by the comments of the EU’s main Brexit negotiator Michelle Barnier, who announced that he was ready to offer a unique agreement that was more profitable for the UK than all previous ones.
Support and resistance
Today, as there is a lack of key macroeconomic releases, traders should pay attention to the technical indicators’ readings.
On the 4-hour chart, the upward movement is in the correction, the instrument is trading between the upper border and the middle line of Bollinger bands, the price range is widened, which indicates the possibility of resumption of growth. MACD histogram is in the positive area, the signal line is ready to cross the zero line upwards, after which a signal to open long positions will be received.
Resistance Levels: 1.3070, 1.3090, 1.3105, 1.3120, 1.3137.
Support levels: 1.3050, 1.3027, 1.3005, 1.2985.
Trading tips
Short positions can be opened from the level of 1.3050 with the target at 1.3000 and stop loss at 1.3080.
Long positions can be opened from the level of 1.3140 with the target at 1.3200 and stop loss at 1.3105.
Implementation period: 1–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 1.3050
Take Profit 1.3000
Stop Loss 1.3080
Key Levels 1.2985, 1.3005, 1.3027, 1.3050, 1.3070, 1.3090, 1.3105, 1.3120, 1.3137
Alternative scenario
Recommendation BUY STOP
Entry Point 1.3140
Take Profit 1.3200
Stop Loss 1.3105
Key Levels 1.2985, 1.3005, 1.3027, 1.3050, 1.3070, 1.3090, 1.3105, 1.3120, 1.3137
On Friday, GBP strengthened against USD after the release of ambiguous US statistics. A negative factor for USD was the slowdown in the growth of Nonfarm Payrolls: in September, the figure reached 134K against the forecast of 185K and last month’s figure of 270K. However, the increase in the unemployment rate was 3.7%, which was below the forecast of 3.8% and the previous figure of 3.9% and had a positive effect on the currency.
GBP was supported by the comments of the EU’s main Brexit negotiator Michelle Barnier, who announced that he was ready to offer a unique agreement that was more profitable for the UK than all previous ones.
Support and resistance
Today, as there is a lack of key macroeconomic releases, traders should pay attention to the technical indicators’ readings.
On the 4-hour chart, the upward movement is in the correction, the instrument is trading between the upper border and the middle line of Bollinger bands, the price range is widened, which indicates the possibility of resumption of growth. MACD histogram is in the positive area, the signal line is ready to cross the zero line upwards, after which a signal to open long positions will be received.
Resistance Levels: 1.3070, 1.3090, 1.3105, 1.3120, 1.3137.
Support levels: 1.3050, 1.3027, 1.3005, 1.2985.
Trading tips
Short positions can be opened from the level of 1.3050 with the target at 1.3000 and stop loss at 1.3080.
Long positions can be opened from the level of 1.3140 with the target at 1.3200 and stop loss at 1.3105.
Implementation period: 1–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 1.3050
Take Profit 1.3000
Stop Loss 1.3080
Key Levels 1.2985, 1.3005, 1.3027, 1.3050, 1.3070, 1.3090, 1.3105, 1.3120, 1.3137
Alternative scenario
Recommendation BUY STOP
Entry Point 1.3140
Take Profit 1.3200
Stop Loss 1.3105
Key Levels 1.2985, 1.3005, 1.3027, 1.3050, 1.3070, 1.3090, 1.3105, 1.3120, 1.3137