Technical Analytics Report

GBP/USD: Fundamental Analysis Report

GBP/USD: Fundamental Analysis Report 18 May 2021


Current Trend: investors trust the british currency again

The GBP/USD pair grows, trading within a global uptrend around the level of 1.4184, supported by news of another easing of quarantine restrictions. 

Since yesterday, quarantine measures for the service sector have been significantly eased, and cinemas, museums, restaurants, cafes, and pubs have opened. The UK residents were allowed to go abroad, to the countries of the so-called “green zone”. Today’s data on the labor market also positively influenced the price. The unemployment rate for March fell to 4.8%, and the number of working citizens increased by 84K, which is more than the growth expected by analysts by 50K. 

USD trades neutral, and there are no serious changes expected at least until tomorrow’s publication of the minutes of the Federal Open Market Committee (FOMC). As for the fight against coronavirus, during his speech yesterday, US President Joe Biden noted that the vaccination campaign was progressing ahead of schedule, and the country was ready to send 80M doses of vaccine to other countries. Biden stressed that it is very important for the US to supply more vaccines than Russia and China have already done. 

Support and Resistance

Globally, the instrument moves within an upward trend and today, it may try to break the maximum. Technical indicators are in a buy state: the EMA swing range on the Alligator indicator remains wide, and the AO oscillator histogram is forming upward bars. 

Resistance levels: 1.4233, 1.4400.

Support levels: 1.4046, 1.3682. 

Trading Tips

·         After growth or consolidation above the local resistance level of 1.4233, buy positions with the target at 1.4400 are relevant. Stop loss – 1.4150. Implementation period: 7 days or more.

·         After reversal and decline or consolidation below the local support level of 1.4046, sell positions with the target at 1.3682 are relevant. Stop loss – 1.4200. 

Scenario 

Timeframe: Weekly

Recommendation: Buy Stop

Entry Point: 1.4233

Take Profit: 1.4400

Stop Loss: 1.4150

Key Levels: 1.3682, 1.4046, 1.4233, 1.4400 

Alternative Scenario 

Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 1.4046 

Take Profit: 1.3682

Stop Loss: 1.4200

Key Levels: 1.3682, 1.4046, 1.4233, 1.4400


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