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GBP/USD Technical Analysis - GBP/USD Trading: 2021-10-18

GBP/USD Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Above 1,378

Buy Stop

Below 1,341

Stop Loss

Dmitry Lukashev
Senior Analytical Expert
Articles 1804
IndicatorValueSignal
RSI Buy
MACD Buy
MA(200) Neutral
Fractals Buy
Parabolic SAR Buy
Bollinger Bands Neutral

GBP/USD Chart Analysis

GBP/USD Chart Analysis

GBP/USD Technical Analysis

On the daily timeframe, GBPUSD: D1 approached the upper border of the descending channel and the 200-day moving average line. They must be broken upward before opening a position. A number of technical analysis indicators have generated signals for further growth. We do not rule out a bullish movement if GBPUSD rises above its last high and 200-day moving average line: 1.378. This level can be used as an entry point. The initial risk limitation is possible below the Parabolic signal and the last two lower fractals: 1.341. After opening a pending order, move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (1.341) without activating the order (1.378), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of Forex - GBP/USD

In Britain, there were positive macroeconomic data. Will the GBPUSD quotes continue to rise?

British GDP in August grew by 6.9% in annual terms. This is above the forecast + 6.7%. Let's remind that in the 2nd quarter the economic growth was 23.6% in annual terms. Thanks to good statistics, the likelihood of a Bank of England (BoE) rate hike at the meeting on December 16, 2021 approached 70%. It was also helped by the acceleration in the growth of the United Kingdom Consumer Price Index (inflation) in August to 3.2%, which is the highest since March 2012. Remember that inflation for September will be released on October 20. According to forecasts, it may grow even more and amount to 3.4%. A strengthening of the pound is possible if the BoE rate rises. Now it is + 0.1%.

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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.