Technical analysis: Will the GBP/USD price continue rebounding?

Dmitry Lukashov IFC Markets

Recommendation for GBP/USD: Buy

Buy Stop։ Above 1.3912.
Stop Loss։ Below 1.3744.

Indicator	Signal
RSI	Neutral
MACD	Buy
Donchian Channel	Neutral
MA(200)	Buy
Fractals	Neutral
Parabolic SAR	Buy

Chart analysis

The technical analysis of the GBPUSD price chart in daily timeframe shows GBPUSD,D1 is testing the 200-period moving average MA(200) after breaching above the resistance line. We believe the bullish momentum will continue after the price breaches above the upper bound of the Donchian channel at 1.3912. 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 1.3744. 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 inflation rose more than expected in August. Will the GBPUSD price continue rebounding?

UK’s inflation rose more than expected in August. The Office for National Statistics reported UK consumer price index jumped to 3.2% over year in August, the highest since March 2012, from 2% in July and above market forecasts of 2.9%. AT the same time the number of people claiming unemployment benefits in the UK declined by 58.6 thousand in August following a 48.9 thousand fall in July. It is the sixth consecutive monthly decline. These are bullish developments for GBPUSD.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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