LiteForex - Analytics

    LiteForex

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    Analytical review of the currency pair GBP/USD on 12.02.2016

    Technical data of the currency pair:

    Previous closing: 1.4476;
    Opening: 1.4476;
    Annual revenue: -5.06%;
    ДDaily range: 1.4460-1.4528;
    52-week range: 1.4079-1.5930;
    Change in % for the previous day: -0.29

    Analytical review:

    • Since mid-December 2015 the British pound has significantly weakened against the USD (over 100 points). Important US statistics release last week, did not have much impact on the GBP;
    • At yesterday’s press-conference Janet Yellen, the head of the US Fed, has added more uncertainty to the issue of interest rate increase. US economy is facing risks due to problems in the financial sector, in the Chinese economy and stock markets;
    • The price of the USD slightly increased amid positive US statistics, which showed that the number of initial applications for unemployment benefits fell by 5.6% from 285000 to 269000;;
    • “Commitments of Traders” shows ambiguous situation. Large speculators do not have a common opinion about the Pound. Long positions have increased by 2987 contracts. Short positions have also increased by 2611 contracts.

    Summary:

    • The currency quietly reacts to important macro-economic US data. Uncertainty in the US monetary policy, the fall in the world stock and commodity markets and problems in the financial sectors of the USA and EU have created high volatility in the market.
    • It is recommended to enter the market from the key resistance and support levels.


    Trading tips for the currency pair GBP/USD

    Medium-term trading: currently, the currency is traded between the local support and resistance levels of 1.4460 – 1.4560. We recommend to enter the market after breaking down and testing of these levels. Stop-order can be placed slightly above/below the signal line. Risk per trade is not more than 1.5% of capital. Take profit should be placed in parts at the levels of 50%, 30% and 20% with the use of trailing stop.

    Short-term trading: On the chart with timeframe 15М a reversal has been formed. In case of maintenance and testing of the level of 1.4470, long positions can be opened. Stop-order can be placed slightly below the signal line. Take profit should be placed in parts at the levels of1.4520, 1.4555 and 1.4580 with the use of trailing stop.


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