Current trend

Against the stabilization of the American currency and the absence of key British macroeconomic statistics, the GBP/USD pair is adjusted at 1.2292.

Tomorrow, data on the state of the British economy for August will be published: according to analysts, gross domestic product (GDP) will increase by 0.2%, which will raise the annual figure by 0.5%, and if the forecast is realized, the pound may significantly strengthen. The International Monetary Fund (IMF) expects the value to increase by 0.6% in 2024, the minimum among the G7 countries, which indicates continued problems in the country’s economy.

The American dollar is declining, trading at 105.400 on the USD Index. Since the beginning of the week, representatives of the US Federal Reserve have been making statements regarding further monetary policy, and their rhetoric has been very soft: thus, one of the main “hawks”, vice chairman of the regulator Philip Jefferson, said that officials are considering the possibility of lowering interest rates, and he does not see much need for their further increase. The minutes of the department’s latest meeting will be published this evening, which, as investors hope, will help clarify the situation.

Support and resistance

On the daily chart, the trading instrument is correcting within the global channel with dynamic boundaries of 1.2290–1.2030, approaching the resistance line.

Technical indicators maintain a stable sell signal, not excluding growth: fast EMA on the Alligator indicator are approaching the signal line, and the AO histogram is forming ascending bars, rising in the sales zone.

Resistance levels: 1.2360, 1.2520.

Support levels: 1.2200, 1.2030.

Trading tips

Long positions may be opened after a reversal, growth and consolidation of the price above 1.2360 with the target at 1.2520. Stop loss – 1.2300. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 1.2200 with the target at 1.2030. Stop loss – 1.2300.