GBP/USD Technical Analysis | GBP/USD Trading: 2021-05-10 | IFCM UK
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GBP/USD Technical Analysis - GBP/USD Trading: 2021-05-10

GBP/USD Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Above 1.401

Buy Stop

Below 1.366

Stop Loss

Mary Wild
Senior Analytical Expert
Articles 2058
IndicatorSignal
RSI Neutral
MACD Neutral
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

GBP/USD Chart Analysis

GBP/USD Chart Analysis

GBP/USD Technical Analysis

On the daily timeframe, GBPUSD: D1 is in an uptrend and has approached the triangle resistance line. It must be broken upward before opening a position. A number of technical analysis indicators formed signals for further growth. We do not exclude a bullish movement if GBPUSD rises above the last 2 upper fractals: 1.401. This level can be used as an entry point. We can place a stop loss below the Parabolic signal, 4 lower fractals and the lower Bollinger line: 1.366. After opening a pending order, we can move the stop loss to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. after the transaction, the most risk-averse traders can switch to the four-hour chart and place a stop loss, moving it in the direction of the bias. If the price meets the stop loss (1.401) without activating the order (1.366), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.

Fundamental Analysis of Forex - GBP/USD

Bank of England (BoE) raised its forecast for British GDP growth. Will the GBPUSD continue to increase?

The BoE kept the rate at an all-time low of 0.1% at its regular meeting on May 6. The bank also maintained the annual bond buyback limit of £875bn. As earlier acquisitions were ahead of schedule, BoE reduced its weekly buyback to £3.4bn from £ 4.4bn to meet its limit. This may support the exchange rate. Earlier, a similar decision was made by the Bank of Canada, which supported the Canadian dollar. An additional positive factor for the pound could be the increase in the BoE forecast for UK GDP growth in 2021 from 5% to a 70-year high of 7.5%. In turn, the US dollar fell significantly against the background of very weak Non-Farm Payrolls for April, which reduces the likelihood of a tougher Fed monetary policy. Meanwhile, US inflation data for April is due on May 12. According to forecasts, it could soar up to 3.2-3.4% in annual terms, which is the maximum since the fall of 2011.

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Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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