Current trend
The British currency is again rising against the US dollar amid expectations of an increase of the Bank of England’s interest rate for the first time in 10 years.
The meeting of the regulator will be held today at 14:00 (GMT+2), and the press conference of its head Mark Carney will start half an hour later. The decision to tighten monetary policy can be explained by the desire to suppress the growth of inflation in the country. According to the latest data, the inflation rate is currently around 3%, which is significantly higher than the target level of 2%.
Support and resistance levels
The indicator Bollinger bands on the daily chart is moving sideways. The price range does not change, but remains quite spacious, given the nature of trading in recent weeks. Indicator signals the development of corrective dynamics in the short term.
The indicator MACD is growing, keeping a moderate signal to buy (the histogram is located above the signal line).
Stochastics is going an upward direction, approaching the overbought zone, which indicates a corrective pullback in the short-term perspective.
Resistance levels: 1.3290, 1.3336, 1.3400, 1.3454.
Support levels: 1.3238, 1.3148, 1.3108, 1.3067.
Trading tips
To open long positions, you can rely on the reverse of the pair at the current price with a breakout of 1.3300-1.3315. Take-profit – 1.3400. The stop loss is 1.3250. Term of realization: 2 days.
However, the scenario with the formation of a corrective fall and the breakdown of 1.3238 is more likely. The goal of the "bears" in this case may be the level of 1.3150. The stop loss is 1.3300. Term of realization: 2 days.
The British currency is again rising against the US dollar amid expectations of an increase of the Bank of England’s interest rate for the first time in 10 years.
The meeting of the regulator will be held today at 14:00 (GMT+2), and the press conference of its head Mark Carney will start half an hour later. The decision to tighten monetary policy can be explained by the desire to suppress the growth of inflation in the country. According to the latest data, the inflation rate is currently around 3%, which is significantly higher than the target level of 2%.
Support and resistance levels
The indicator Bollinger bands on the daily chart is moving sideways. The price range does not change, but remains quite spacious, given the nature of trading in recent weeks. Indicator signals the development of corrective dynamics in the short term.
The indicator MACD is growing, keeping a moderate signal to buy (the histogram is located above the signal line).
Stochastics is going an upward direction, approaching the overbought zone, which indicates a corrective pullback in the short-term perspective.
Resistance levels: 1.3290, 1.3336, 1.3400, 1.3454.
Support levels: 1.3238, 1.3148, 1.3108, 1.3067.
Trading tips
To open long positions, you can rely on the reverse of the pair at the current price with a breakout of 1.3300-1.3315. Take-profit – 1.3400. The stop loss is 1.3250. Term of realization: 2 days.
However, the scenario with the formation of a corrective fall and the breakdown of 1.3238 is more likely. The goal of the "bears" in this case may be the level of 1.3150. The stop loss is 1.3300. Term of realization: 2 days.