.jpg)
Current Trend: the pound started the week with a growth
The GBP/USD pair is strengthening amid market expectations of a possible easing of quarantine restrictions, which British Prime Minister Boris Johnson is to announce today. He may approve the resumption of international travel from May 17 but citizens will have to undergo testing and quarantine when entering the country. Also, permission will be given to operate pubs and restaurants and to resume indoor meetings citizens groups of up to six people.
However, investor optimism may not last long as the country faces a new political crisis. Supporters of its independence confidently won the elections to the Scottish parliament, and First Minister Nicola Sturgeon has already announced the need for a new referendum on secession from the UK. Boris Johnson confirmed that he will try to block a new referendum as the last expression of the will of the people of Scotland took place quite recently, in 2014.
USD remains under pressure due to the poor April data on the US labor market. The rise in unemployment to 6.1% and the slowdown in employment growth from 770K to 266K disappointed investors who were counting on tightening monetary policy and confirmed that the American economy will still take a long time to recover.
A breakdown of 1.4100 allows growth to 1.4160 (Murrey [8/8]) and 1.4221 (Murrey [+1/8]). The key “bearish” level is 1.3895 (Bollinger bands’ midline), which breakdown allows a decline to 1.3793 (Murrey [2/8]) and 1.3732 (Murrey [1/8]). In general, the upward trend persists, as indicators reflect: Bollinger Bands and Stochastic are directed upwards, MACD grows in the positive zone.
Resistance Levels: 1.4100, 1.4160, 1.4221.
Support Levels: 1.3895, 1.3793, 1.3732.
Timeframe: Weekly
Recommendation: Buy Stop
Entry Point: 1.4105
Take Profit: 1.4160, 1.4221
Stop Loss: 1.4055
Key Levels: 1.3732, 1.3793, 1.3895, 1.4100, 1.4160, 1.4221
Timeframe: Weekly
Recommendation: Sell Stop
Entry Point: 1.3890
Take Profit: 1.3793, 1.3732
Stop Loss: 1.3965
Key Levels: 1.3732, 1.3793, 1.3895, 1.4100, 1.4160, 1.4221
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell these assets. You should do your own thorough research before making any investment decisions. EnclaveFX Ltd does not in any way guarantee that this information is free of mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in the Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses, and costs associated with investing, including the total loss of principal, are your responsibility.
EnclaveFX Ltd and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. EnclaveFX Ltd and the author will not be liable for any errors, omissions, or any losses, injuries, or damages arising from this information and its display or use. The company is not responsible for errors or omissions.
