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Forex Market Analysis: GBP and USD Consolidates at the 1.2802-1.2889 Resistance Area

Forex
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Monday, April 24, 2017/ 11:00 AM /Meristem  

 

Source: www.merifx.com 
 

Fundamental Indication

  • GBP: The British Pound (GBP) rally on Tuesday, 18th April, 2017, following Prime Minister, Theresa May’s  announcement of a snap election to be held on June 8, was not sustained as the Pound subsequently declined against the Dollar. We anticipate that the Gross Domestic Product (GDP) report, scheduled to be released later this week (Forecast 2.30%, Previous 1.90%) may influence the price movement of the pair.

  • USD: Mixed sentiment still prevails as tension continues to rise as a result of the US-North Korea standoff and the review of President Donald Trump first 100 days. Economic news releases this week may also influence the price movement of the pair. 

Technical Analysis

The GBP/USD broke its 94 days symmetrical triangle as a result of the announcement of a snap election on June 8. However, the pair has approached the 1.2802-1.2889 resistance area displaying weak momentum for a continuous uptrend.

Scenario 1:

·         If the pair breaks below the 1.2754 price, we advise a “SELL”.

·         Stop loss at 1.2908.

·         First profit target when price reaches the top of the triangle.

·         Second profit target at 1.2375.

Scenario 2:

·         If the pair pulls back to the triangle and displays a bullish candlestick confirmation with rising momentum, we advise a “BUY”.

·         Stop loss at the low of the bullish candlestick.

·         First profit target 1.2844.

·         Second profit target at 1.3025.

Enter Into The MARKET
 

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