empty
 
 
09.08.2019 07:56 AM
Burning forecast for GBP/USD on 08/09/2019 and trading recommendation

Today is the busiest day of the week in terms of the economic calendar, the first to start is the British as it is set to publish a preliminary estimate of GDP for the second quarter and there we see a slowdown in economic growth from 1.8% to 1.4%. This is practically a slide into recession, which will not go unnoticed by market participants. Then, for the same Britain, data on industrial production will be released, where there is also a decline from 1.4% to -0.2%. Well, the news flow ends with the publication of data on producer prices in the United States, where the indicator should remain at the same level of 1.7%. In general, the British currency could be under pressure.

This image is no longer relevant

The GBP/USD pair has not exhaustively been moving horizontally as early as the ninth day, pumping two emotions at once on market participants: Fear of uncertainty and the desire not to miss a cross.

Looking at the trading chart in general terms, we see that the main downward movement is in the consolidation phase, due to ambiguity, but the trend has been downward and remains with a periodic support point of 1.2078.

It is likely to assume that the turbulence within the boundaries of 1.2100-1.2200 (+/- 20p) will still remain for some time, where the accumulation process will get even more agitated and as a result all this will result in an uncontrolled, inertial jump. Traders, in turn, take a wait-and-see position, giving priority to the "work on the breakdown" trading method.

Specifying all of the above in trading signals:

  • We consider long positions in case of price consolidations higher than 1.2220, with the prospect of a move to 1.2250-1.2350.
  • We consider short positions in case of a clear price consolidation lower than 1.2080, with the prospect of a move to 1.2000

From the point of view of a comprehensive indicator analysis, we see that indicators on minute periods signal a purchase due to testing the lower limit of accumulation, but due to horizontal movement indicators of technical tools are variable. Intraday and medium-term periods signal a downward mood.

This image is no longer relevant

Dean Leo,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback