Technical Analysis GBPUSD : 2014-03-28


Good afternoon, dear traders. Today at 11:30 (CET) we will see the UK (Current Account) data. This indicator is a quarterly measure of the difference between imports and exports of goods and services, as well as bilateral investment. As the indicator includes the known values of the Trade Balance, it is attractive to investors as an investment component. So, if the Current Account rises above expectations (the projected level -13.5B), it will mean that there is an increased interest in domestic investment and demand for the GBP.

GBPUSD

Let us consider the GBPUSD on the H4 chart. The daily and H4 trends are under bullish control. The Parabolic SAR also confirms the uptrend. There is no contradiction on the part of the RSI-Bars. The price drifts above the signal line of the Pivot channel and accumulates further upward movement potential.

The stop loss is selected according to the nearest minimum at 1.65970. The preliminary target level is below the first 161.8% Fibonacci level according to historical data. The closest historical maximum in this area corresponds to 1.66860. The stop loss is recommended to be moved after the ParabolicSAR, as soon as it crosses the advanced risk limitation level. The GTC is recommended to be open 15 minutes before Current Account publication. We believe that the position should be closed immediately in case the figure is below or equal to the predicted level (-13.5B). This would mean that the trend has reversed and the market experiences fundamental changes, which were not taken into account by us.

Directionup
Position openingabove 1.66540
Preliminary targetbelow 1.66860
Preliminary stopbelow 1.65970

Note

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