GBP/USD: the pound is consolidating
Current trend
GBP is showing insignificant growth against USD during today's Asian session. After a noticeable correctional decline on August 7, the "bulls" are trying to recover again, although there are not many reasons for the return of the uptrend at the beginning of the week. The short-term strengthening of USD on Friday was facilitated by the publication of the US labor market report for July. The data turned out to be noticeably better than expectations, but they still could not reverse the global trend towards USD depreciation.
In turn, GBP was moderately supported on Friday by the news of the UK's readiness to conclude a trade agreement with Japan by the end of August. Investors are obviously more interested in a trade deal with the EU, but the establishment of other trade ties in one way or another strengthens the position of the UK after Brexit.
Support and resistance
Bollinger Bands in D1 chart show active growth. The price range is narrowing, reflecting the emergence of ambiguous dynamics of trading in the short term. MACD reversed into a descending plane, having formed a new sell signal (located below the signal line). Stochastic retains a steady downtrend and is currently at the center of its area.
The development of a full-fledged correctional decline is possible in the short and/or ultra-short term.
Resistance levels: 1.3100, 1.3200, 1.3300.
Support levels: 1.3000, 1.2900, 1.2812, 1.2766.
Current trend
GBP is showing insignificant growth against USD during today's Asian session. After a noticeable correctional decline on August 7, the "bulls" are trying to recover again, although there are not many reasons for the return of the uptrend at the beginning of the week. The short-term strengthening of USD on Friday was facilitated by the publication of the US labor market report for July. The data turned out to be noticeably better than expectations, but they still could not reverse the global trend towards USD depreciation.
In turn, GBP was moderately supported on Friday by the news of the UK's readiness to conclude a trade agreement with Japan by the end of August. Investors are obviously more interested in a trade deal with the EU, but the establishment of other trade ties in one way or another strengthens the position of the UK after Brexit.
Support and resistance
Bollinger Bands in D1 chart show active growth. The price range is narrowing, reflecting the emergence of ambiguous dynamics of trading in the short term. MACD reversed into a descending plane, having formed a new sell signal (located below the signal line). Stochastic retains a steady downtrend and is currently at the center of its area.
The development of a full-fledged correctional decline is possible in the short and/or ultra-short term.
Resistance levels: 1.3100, 1.3200, 1.3300.
Support levels: 1.3000, 1.2900, 1.2812, 1.2766.