LiteForex: GBP/USD: the pound is pressured by permutations in the British government
Current trend
Last week, the pair tested 1.3600 mark, but today it adjusted to the level of 1.3550 (Murrey [7/8]). The uncertainty of the market is caused by the expectation of the reshuffle in the government of Theresa May, which is to be held on Monday and Tuesday.
However, it is expected that the reshuffle will not affect key cabinet ministers, such as David Davis, Philip Hammond, and Boris Johnson. Perhaps the First Secretary of State, the actual deputy prime minister, will be the current health minister Jeremy Hunt, a consistent supporter of Brexit. Earlier this position was occupied by Damian Green, but in December he was forced to resign because of a sexual scandal that shook the domestic political position of Theresa May. The current reshuffle should restore stability to the British government before the next round of Brexit talks.
Support and resistance
Technically, the price dropped below the 1.3550 mark (Murrey [7/8]) and may continue to decline to the level of 1.3427 (Murrey [6/8], the middle line of the Bollinger Bands) and 1.3305 (Murrey [5/8]). Technical indicators generally allow the possibility of a downward correction. Stochastic is pointing downwards. MACD histogram and price chart demonstrate slight diversion. One may speak about resuming growth after the price consolidates below the level of 1.3600. In this case, the growth can be continued to the levels of 1.3670 (Murrey [8/8]) and 1.3795 (Murrey [+1/8]).
Support levels: 1.3427, 1.3305, 1.3215.
Resistance levels: 1.3550, 1.3600, 1.3670, 1.3795.
Trading tips
Short positions may be opened from the level of 1.3510 with targets at 1.3427, 1.3305 and stop-loss at 1.3560. If the price consolidates above 1.3600, long positions could be opened with targets at 1.3670, 1.3795 and stop-loss at 1.3570.
Read more analytic on LiteForex site https://www.liteforex.com/trading/forex-analysis/
Current trend
Last week, the pair tested 1.3600 mark, but today it adjusted to the level of 1.3550 (Murrey [7/8]). The uncertainty of the market is caused by the expectation of the reshuffle in the government of Theresa May, which is to be held on Monday and Tuesday.
However, it is expected that the reshuffle will not affect key cabinet ministers, such as David Davis, Philip Hammond, and Boris Johnson. Perhaps the First Secretary of State, the actual deputy prime minister, will be the current health minister Jeremy Hunt, a consistent supporter of Brexit. Earlier this position was occupied by Damian Green, but in December he was forced to resign because of a sexual scandal that shook the domestic political position of Theresa May. The current reshuffle should restore stability to the British government before the next round of Brexit talks.
Support and resistance
Technically, the price dropped below the 1.3550 mark (Murrey [7/8]) and may continue to decline to the level of 1.3427 (Murrey [6/8], the middle line of the Bollinger Bands) and 1.3305 (Murrey [5/8]). Technical indicators generally allow the possibility of a downward correction. Stochastic is pointing downwards. MACD histogram and price chart demonstrate slight diversion. One may speak about resuming growth after the price consolidates below the level of 1.3600. In this case, the growth can be continued to the levels of 1.3670 (Murrey [8/8]) and 1.3795 (Murrey [+1/8]).
Support levels: 1.3427, 1.3305, 1.3215.
Resistance levels: 1.3550, 1.3600, 1.3670, 1.3795.
Trading tips
Short positions may be opened from the level of 1.3510 with targets at 1.3427, 1.3305 and stop-loss at 1.3560. If the price consolidates above 1.3600, long positions could be opened with targets at 1.3670, 1.3795 and stop-loss at 1.3570.
Read more analytic on LiteForex site https://www.liteforex.com/trading/forex-analysis/