GBPUSD Analysis: Steady UK average earning bullish for GBPUSD

January 21, 2020

By IFCMarkets

Steady UK average earning bullish for GBPUSD

On the hourly timeframe the GBPUSD: H1 has breached above the declining 200-period moving average MA(200).

We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 1.3046. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 1.3036. After placing the order, the stop loss is to be moved to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

The annual growth of average weekly earnings for employees in Great Britain remained unchanged at 3.2% for total pay (including bonuses) when a slowing to 3.1% growth was expected. Will the GBPUSD continue rising?


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Indicator VALUE Signal
RSI Neutral
MACD Buy
MA(200) Buy
Parabolic SAR Buy
Fractals Buy
Donchian Channel Buy

 

Summary of technical analysis

Order Buy
Buy stop > 1.3046
Stop loss < 1.3036

Market Analysis provided by IFCMarkets