Technical Analysis: Will the GBP/USD continue rebounding?
|Recommendation for GBP/USD: Buy
Buy Stop: Above 1.4152
Stop Loss: Below 1.4080
RSI: Neutral
MACD: Buy
MA(200): Buy
Fractals: Neutral
Parabolic SAR: Buy
Chart analysis
The GBPUSD technical analysis of the price chart on 1-hour timeframe shows GBPUSD: H1 hit 3-month high a day ago above the 200-period moving average MA(200) which is rising. We believe the bullish momentum will continue after the price breaches above the upper bound of the Donchian channel at 1.4152. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 1.4080. After placing the order, the stop loss is to be moved to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental analysis
UK’s manufacturing output continued to expand in March. Will the GBPUSD continue rebounding? UK’s manufacturing output continued to expand in March. The Office for National Statistics reported UK manufacturing output rose 2.1%over month in March after 1.5% growth in February when a 1% increase was expected. This is bullish for GBPUSD.
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