The British pound is trading with an upward trend against the US dollar in the morning session, again trying to gain a foothold above the 1.3900 mark.
The "bulls" are winning back the positions lost the day before, when the US currency received an impulse to grow against the background of optimistic statements by the representative of the US Federal Reserve Richard Clarida that the regulator is considering the possibility of reducing existing incentives this year. However, a more confident growth of the dollar was hindered by an unexpectedly weak ADP report on employment in the private sector. In July, the US economy created only 330 thousand jobs, while market forecasts suggested their growth by almost 700 thousand.
Today, British investors will follow the publication of the minutes of the Bank of England's interest rate meeting. The market again does not expect any changes in the vector of monetary policy, but comments and updated forecasts will be very important. The UK economy is showing optimistic results, besides, the country is managing to cope with the next wave of coronavirus cases, so analysts do not predict new restrictions.
Support and resistance levels
The Bollinger bands on the daily chart show quite active growth within the framework of the forex forecast. The price range is narrowing, reacting to the mixed dynamics of recent days, but it remains quite spacious for the current level of activity in the market. The MACD indicator is trying to turn downwards, but it retains the previous buy signal (the histogram is located above the signal line). Stochastic, on the contrary, shows a steady decline, practically not reacting to attempts to increase the instrument at the beginning of the week.
- Resistance levels: 1.3900, 1.3960, 1.4000.
- Support levels: 1.3857, 1.3800, 1.3750, 1.3700.
Trading Scenarios
Thus, GBP/USD forecast pound dollar for August 6-9, 2021 to open long positions, you can rely on a confident breakdown of the 1.3900 level up. Take profit — 1.4000. The stop loss is 1.3857. Implementation period: 1-2 days.
A rebound from the 1.3900 level as a resistance, followed by a breakdown of the 1.3857 mark down, may be a signal for new sales with a target of 1.3750. The stop loss is 1.3910.