GBPUSD Forecast | Faster UK services sector decline bearish for GBPUSD | IFCM

Technical Analysis GBPUSD : 2020-04-03

Recommendation for GBP/USD:

Strong SellSellNeutralBuyStrong Buy

Below 1.2261

Sell Stop

Above 1.2394

Stop Loss

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Senior Analytical Expert
Articles 1554
RSI Neutral
Donchian Channel Neutral
MA(200) Buy
Fractals Sell
Parabolic SAR Sell

Chart Analysis

IFC Markets Tech Analysis

On 1-hour timeframe GBPUSD: H1 is falling toward the 200-period moving average MA(200) which is levelling off. We believe the bearish movement will continue after the price breaches below the lower bound of the Donchian channel at 1.2261. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 1.2394. After placing the order, the stop loss is to be moved to the next fractal high, 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.

Fundamental Analysis

UK services sector contraction accelerated in March. Will the GBPUSD continue sliding?

UK services sector recorded sharpest contraction for more than two decades: final Services PMI index was revised lower from a preliminary estimate of 35.7 to 34.5 in March, after a reading of 53.2 in February. This is bearish for GBPUSD.

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