Against the background of the ongoing stagnation of the US dollar, the GBP/USD pair is moving in a local uptrend, trading around the 1.3916 mark.
The meeting of the Bank of England, which took place the day before, ended with the expected decision to leave the interest rate and the main parameters of monetary policy unchanged. All eight members of the regulator voted to maintain the indicator at the level of 0.10% and the volume of the quantitative easing program at the level of 875 billion pounds. The ministry said that it expects a further increase in inflation in the near future from the current 2.5% to 3.0% by the end of the year, after which the indicator will naturally stabilize and return to the target level of 2.0%.
The US currency index is being adjusted, being near the key mark of 92,000. Investors were disappointed by yesterday's data on applications for unemployment benefits, the number of which amounted to 385 thousand instead of the expected 384 thousand. The main attention of market players is focused on the data on the unemployment rate for July and on employment in the non-agricultural sector, which will be published today. Analysts expect a significant improvement in both indicators: unemployment is projected at 5.7% instead of 5.9% in June, and the growth of the labor force in the non-agricultural sector is expected at the level of 870 thousand.
Support and resistance levels
The instrument moves within the framework of the global descending "head and shoulders" pattern, correcting upwards in the process of forming the second "shoulder".
Technical indicators gave a local buy signal: fast EMAS on the alligator indicator crossed the signal line from the bottom up, and the histogram of the AO oscillator moved into the buy zone within the forex forecast.
- Resistance levels: 1.3985, 1.4181.
- Support levels: 1.3805, 1.3589.
Trading Scenarios
Thus, GBP/USD forecast pound dollar for August 9-10, 2021 in the event of continued corrective growth of the asset, as well as consolidation above the local resistance level at 1.3985, buy positions with a target of 1.4181 will be relevant. The stop loss is 1.3920. Implementation period: 7 days or more.
If the asset continues to decline, as well as consolidation below the local support level at 1.3805, it is important to open sell positions with a target of 1.3589. The stop loss is 1.3900.