Experts warn: GBPUSD may decline in the short run down to 1.5300.
It is mainly connected with the weak and slow recovery of the British economy and growing inflation in the country. Such a situation makes the Bank of England unable to toughen its monetary policy.
Experts underline that in the short run we should get ready for the GBP decline against USD because of the declining forecasts for the UK economy in general. Moreover, the US treasury bonds have become more attractive for investors while the sentiments concerning the US economy remain positive.
Movement scenarios: markup. Daily-H1-M15. GBPUSD. Jan 4th 2011
1. Upward scenario (CP1)
Support level: 1.5470 is critical for this variant of movement. A breakout of it cancels the scenario.
Resistance levels:
Volatility indicator “Saks Channel”: 1.5483 - 1.5565 - 1.5647.
2. Flat scenario (Flat-zone) Daily:
Support level: 1.5365.
Resistance level: 1.5582.
For the flattish movement scenario these levels are critical. If there is flat widening, the levels may see false breakouts. However, the deviation mustn’t exceed 161.8% - 1.5783. Therefore, in this case the price mustn’t come out of the buy-zone or sell-zone. The 161.8% support level inside the buy-zone and the 161.8% resistance level inside the sell-zone are critical for this scenario and cancel it once violated.
3. Downward scenario (CP1)
Resistance level: 1.5506 is critical for this variant of movement. A breakout of it cancels the scenario.
Support levels:
Volatility indicator “Saks Channel”: 1.5401 - 1.5319.
Local lows: 1.5343 - 1.5295. (Daily). Sell target grid of the basic indicator: 1.5448 - 1.5416 - 1.5365.
Provided by the Department of mid-term trading and GTMT, Masterforex-V Academy.
Attention!
09:30 (GMT) UK
CIPS Manufacturing PMI - Dec 58 57.2
19:00 (GMT) US
Federal Open Market Committee meeting minutes (Dec)
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