LiteForex - Analytics


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    Analytical review of GBP/USD for 14.06.2016

    Technical performance:

    Prev. closure: 1.4270;
    Daily range: 1.4140-1.4271;
    Opening: 1.4270;
    52-week range: 1.3833-1.5930;
    Annual profit: -4.46%;
    Previous day's change (%): 0.10.

    Analytical review :

    • The pound lost more than 350 points against the USD over the past week. The pair has found a local support at 1.4140;
    • The pound is under pressure due to the US Fed's forthcoming decision on further monetary policy and a British referendum scheduled for 23d June;
    • Concerns about a possible Brexit continue growing. According to research company ORB, the number of British voters supporting an exit from the EU increased to 55%;
    • The Commitments of Traders Report shows that important market operators have decreased the number of their short positions by 27988 contracts to 112613 contracts. The number of long positions amounts to 195555 contracts;
    • A news factor is worth attention. Statistics on the UK consumer price index and the US retail sales are to be released today. These events may affect market volatility.

    Summary :

    • Uncertainty about the US further monetary policy, the upcoming referendum in the UK and increased volatility on financial markets put pressure on the currency.
    • According to the Commitments of Traders Report, important speculators have reduced their short positions.
    • Thus, there is no unidirectional movement in the market. We recommend searching for market entry points from key support and resistance levels.

    Trading tips for GBP/USD

    Key levels:
    Support levels: 1.4140
    Resistance levels: 1.4275, 1.4385

    Medium-term trading, H1 
    The currency is currently trading near a local support level at 1.4140. Once this level is broken and tested, and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open short positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 1.4090, 1.4040 and 1.3990, with Trailing Stop applied.

    Medium-term trading, H1:
    Medium-term trading, H1

    Short-term trading, M15 
    The currency is trading at 1.4120-1.4195. We advise you to search for market entry points once this zone is broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

    Short-term trading, M15
    Short-term trading, M15

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