When loneliness is for good. Brexit and GBP/USD. Review for a week.

That’s the beginning of a new week in the financial market. Week of new opportunities and new experiences. One of the advantages of stock trading – in the market you are never bored).
With you, trading coach in the financial market Andrew Green!

The British pound continues to argue that the wolf is not so terrible as it is painted. Despite the pessimistic forecasts and sentiments of a large number of investors regarding the impact Britain’s withdrawal from the European Commonwealth, the economy of the single kingdom shows very good dynamics both in the sphere of economy and production, and in the world of finance and abstract money capital. In the overall market dynamics, the Pound continues to strengthen, confidently stabilizing above 1.4000. Continuing negotiations on cooperation between Britain and the member countries of the European Commonwealth, to a greater extent, strengthen the position of the British currency. After positive comments from the representatives of Italy and France we expect confirmation from the German and, in general, everything is good.

This week external factors influence the British a lot: it is worth paying attention to the group of reports from the social sector (21.02.18, 09:30 UTC), the inflation report (21.02.18, 14:15 UTC), and the second publication of data on GDP (22.02.18, 09:30 UTC).

To a large extent, we should not expect big surprises from these news, the market reaction will be directed if they  confirm the general sentiment for the current moment – further strengthening of the British “cable”.

Also pay attention to the dynamics of the American stock market, for more information, read the article-review for a week on the USD index.

As for me, a clearer picture for trading on the pair GBP/USD for today can be observed only in the context of technical analysis, to which we will proceed.

For start, a little attention to figure 1 and a weekly timeframe.

As we see, special changes are not observed so far and the pair steadily continues the dynamics of the upward trend of the last year and a half. Last week formed a candle on the continuation of the movement to growth and, on the whole, it is a good message for the main direction of trade. Zones of medium-term purchases and sales, as compared to last week, remain unchanged.

• 1.4500 – 1.5000 sales, with a cut-off above 1.5100
• 1.3300 – 1.3500 purchases, with a cut-off below 1.3200

For intraday trading, let’s move on to figure 2 and timeframe H1.

Here is what we can use to start earning today and throughout this week! For sales, the most convenient blue zone, with benchmarks 1.4170-1.4200. For purchases, in turn, two zones – a strong psychology at 1.4000 and there is also a line of support for the current growing dynamics. The second zone – for safer trade – 1.3780-1.3820

Examples of transactions:

• SELL limit 1.4190, SL 1.4220, TP 1.4130
• BUY limit 1.4010, SL 1.3970, TP 1.4070
• BUY limit 1.3810, SL 1.3760, TP 1.3880

Each transaction on the market is an invaluable experience, regardless of the outcome.
But only when we learn, we draw conclusions
and continue to move towards the goals set!

Andrew Green