Building Permits
Today at 14:30 CET Building Permits will be released in the United States. The indicator is published monthly and indicates a number of permits for new construction, issued by the government. It allows estimating the growth potential of the real estate sector. As a result, we can assess the increase in the consumption of secondary demand goods and the ones of the technology sector.
Today we consider the GBP/USD currency pair on the D1 chart. The price came closer to the weekly support line: we expect a reversal into the green zone direction. The RSI-Bars oscillator has been showing a weak bullish divergence for a month, and over the past few days there has been an upward momentum that should lead to the resistance level breakout at 39.3211%. We assume it will accompany the price level breaking at 1.52776. This mark can be used for placing a pending buy order. After the resistance level is broken, Parabolic indicator will change the bias into the bullish one and DonchianChannel’s upper boundary would be reached. Therefore, we would get the last missing confirming signals. Stop Loss can be placed below the daily support line at the last fractal low 1.50246. After order opening, Stop Loss is to be moved after Parabolic values near the next fractal low. Thus, we are changing the probable profit/loss ratio to the breakeven point.
Currently, the volume of GBP futures traded on the Chicago Mercantile Exchange doesn’t confirm the trend: the level of 170 000 contracts hasn’t been outperformed. The most cautious investors are recommended to wait for the breakout of this level to verify the bullish market. For tracking trading volumes, please visit the Chicago Mercantile Exchange (CME) website.
| Position | Buy |
| Buy stop | above 1.52776 |
| Stop loss | below 1.50246 |
Dear traders. For the detailed report of the strategy based on analytical issues of technical analysis click here.