GBP/USD Technical Analysis Summary
Buy Stop:Above 1,378
Stop Loss:Below 1,341
| Indicator | Signal |
|---|---|
| RSI | Buy |
| MACD | Buy |
| MA(200) | Neutral |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
GBP/USD Chart Analysis
GBP/USD Technical Analysis
On the daily timeframe, GBPUSD: D1 approached the upper border of the descending channel and the 200-day moving average line. They must be broken upward before opening a position. A number of technical analysis indicators have generated signals for further growth. We do not rule out a bullish movement if GBPUSD rises above its last high and 200-day moving average line: 1.378. This level can be used as an entry point. The initial risk limitation is possible below the Parabolic signal and the last two lower fractals: 1.341. After opening a pending order, move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (1.341) without activating the order (1.378), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Forex - GBP/USD
In Britain, there were positive macroeconomic data. Will the GBPUSD quotes continue to rise?
British GDP in August grew by 6.9% in annual terms. This is above the forecast + 6.7%. Let’s remind that in the 2nd quarter the economic growth was 23.6% in annual terms. Thanks to good statistics, the likelihood of a Bank of England (BoE) rate hike at the meeting on December 16, 2021 approached 70%. It was also helped by the acceleration in the growth of the United Kingdom Consumer Price Index (inflation) in August to 3.2%, which is the highest since March 2012. Remember that inflation for September will be released on October 20. According to forecasts, it may grow even more and amount to 3.4%. A strengthening of the pound is possible if the BoE rate rises. Now it is + 0.1%.