GBPUSD forecast bullish despite slowing UK construction
Technical Analysis Summary GBP/USD: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(200) | Buy | |
| Fractals | Neutral | |
| Parabolic SAR | Buy |
Chart Analysis
The technical analysis of the GBPUSD price chart on 1-hour timeframe shows GBPUSD: H1 is rising above the 200-period moving average MA(200) after testing it while the MA(200) is rising itself. We believe the bullish movement will continue after the price breaches above upper Donchian boundary at 1.2193. 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 1.2127. After placing the order, the stop loss is to be moved to the next fractal low indicator, 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 of -
UK’s construction sector activity contracted in July. Will the GBPUSD price rebound continue?
UK’s construction sector activity slowed in July: Markit reported UK Construction PMI declined to 48.9 in July from 52.6 in June, when a decline to 52.0 was forecast. Readings above 50.0 indicates industry expansion, below indicate contraction. This is bearish for GBPUSD. However, the current setup is bullish for the pair.