Current Dynamics
After a significant drop last week, the GBP/USD pair is correcting upwards, settling at the 1.2716 level. This is due to the slowdown in the growth of the US dollar and positive macroeconomic statistics from the UK.
In May, the consumer price index increased by 0.3% compared to the previous month, almost aligning with analysts' expectations. This change favored the annual value correction from 2.3% to 2.0%, maintaining the trend of recent months. Meanwhile, the core value, excluding fuel and food prices, decreased from 3.9% to 3.5%. However, the likelihood of these data influencing the Bank of England's monetary policy decisions is low. Economists have probably already considered the current dynamics and will continue to maintain borrowing costs around 5.25% to bring inflation back to the 2.0% target. On Friday, at 08:00 (GMT+2), a report on retail sales dynamics will be published, which, according to forecasts, will be corrected from -2.3% to 1.5% monthly and from -2.7% to -0.9% annually. Additionally, the S&P Global business activity index in the industrial sector fell from 51.2 points to 51.0 points in June, and in the service sector from 52.9 points to 53.0 points.
The US dollar is trading at the 104.90 level on the USDX. Tomorrow, investors will pay attention to statistics on the national housing market and the number of jobless claims. Housing starts are expected to increase from 1.36 million to 1.38 million, the number of initial jobless claims to decrease from 242,000 to 235,000, and the number of continuing claims for the week of June 7 to decrease from 1.82 million to 1.81 million.
Support and Resistance Levels
On the daily chart, the trading instrument is finalizing the formation of a rare "three white crows" candlestick pattern, which will likely materialize downwards.
The technical indicators are reversing to the downside: the fast EMAs of the "Alligator" indicator are approaching the signal line, and the AO histogram is forming corrective bars, descending in the buying area.
Resistance levels: 1.2760, 1.2890.
Support levels: 1.2670, 1.2560.
Trading Scenarios
Short Positions: Can be opened after the price drops and consolidates below the 1.2670 level, with a target of 1.2560. Place Stop Loss at 1.2720. The timeframe for this scenario is 7 days or more.
Long Positions: Can be opened after the price rises and consolidates above the 1.2760 level, with a target of 1.2890. Place Stop Loss at 1.2700.
This analysis serves as a compass for your investments. As Aristotle said, "Courage is the first of human qualities because it guarantees all the others." So, adjust your sails and navigate with confidence!
After a significant drop last week, the GBP/USD pair is correcting upwards, settling at the 1.2716 level. This is due to the slowdown in the growth of the US dollar and positive macroeconomic statistics from the UK.
In May, the consumer price index increased by 0.3% compared to the previous month, almost aligning with analysts' expectations. This change favored the annual value correction from 2.3% to 2.0%, maintaining the trend of recent months. Meanwhile, the core value, excluding fuel and food prices, decreased from 3.9% to 3.5%. However, the likelihood of these data influencing the Bank of England's monetary policy decisions is low. Economists have probably already considered the current dynamics and will continue to maintain borrowing costs around 5.25% to bring inflation back to the 2.0% target. On Friday, at 08:00 (GMT+2), a report on retail sales dynamics will be published, which, according to forecasts, will be corrected from -2.3% to 1.5% monthly and from -2.7% to -0.9% annually. Additionally, the S&P Global business activity index in the industrial sector fell from 51.2 points to 51.0 points in June, and in the service sector from 52.9 points to 53.0 points.
The US dollar is trading at the 104.90 level on the USDX. Tomorrow, investors will pay attention to statistics on the national housing market and the number of jobless claims. Housing starts are expected to increase from 1.36 million to 1.38 million, the number of initial jobless claims to decrease from 242,000 to 235,000, and the number of continuing claims for the week of June 7 to decrease from 1.82 million to 1.81 million.
Support and Resistance Levels
On the daily chart, the trading instrument is finalizing the formation of a rare "three white crows" candlestick pattern, which will likely materialize downwards.
The technical indicators are reversing to the downside: the fast EMAs of the "Alligator" indicator are approaching the signal line, and the AO histogram is forming corrective bars, descending in the buying area.
Resistance levels: 1.2760, 1.2890.
Support levels: 1.2670, 1.2560.
Trading Scenarios
Short Positions: Can be opened after the price drops and consolidates below the 1.2670 level, with a target of 1.2560. Place Stop Loss at 1.2720. The timeframe for this scenario is 7 days or more.
Long Positions: Can be opened after the price rises and consolidates above the 1.2760 level, with a target of 1.2890. Place Stop Loss at 1.2700.
This analysis serves as a compass for your investments. As Aristotle said, "Courage is the first of human qualities because it guarantees all the others." So, adjust your sails and navigate with confidence!