GBP/USD: caution for possible short positions

03.04.2017 / 10:25

Rating:

GBP/USD: 03.04.2017 D1 charts.

Long-term downtrend and medium choppy.

Price at the top of the consolidation and below the resistance - negative signal.

Technical indicators:

SMA50 and SMA200 - sword formation, the price is locked between the two, but short positions remain more consistent.

DeM (14) - over 0.7 in overbought zone, we can wait for spin down to confirm the sell.

SL 1,2775

Entry after correction in the area below 200SMA at appropriate price action signals.

Attention: at 11:30 we expect manufacturing PMI from the UK where volatility and sentiment can produce good levels of entry.

Fundamental: Amid the depreciation of the pound and lower unemployment, wages increase began to lag and savings decreased.

An additional indicator of the likely drop of the pounds is the ratio of the current account and GDP at record lows and trend of deterioration.

On the other hand, expectations for the US economy are positive and the dollar is likely to remain stable despite short-term sales. In comparison, current account / GDP of the United States:

Trader Nikolay Georgiev

Varchev Traders

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GBP/USD: caution for possible short positions

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