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Technical Analysis GBPUSD : 2020-07-24

Recommendation for GBP/USD:

Strong SellSellNeutralBuyStrong Buy

Below 1.2716

Sell Stop

Above 1.2761

Stop Loss

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Senior Analytical Expert
Articles 1572
RSI Neutral
Donchian Channel Sell
MA(50) Buy
Fractals Sell
Parabolic SAR Sell

Chart Analysis

IFC Markets Tech Analysis

On 1-hour timeframe GBPUSD: H1 is testing the 50-period moving average MA(50) which is rising. We believe the bearish movement will continue after the price breaches below the lower bound of the Donchian channel at 1.2716. 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 1.2761. 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’s manufacturing sector expansion continued in July. Will the GBPUSD continue falling?

UK’s manufacturing sector expansion accelerated in July: Markit’s manufacturing PMI rose to 53.6 from 50.1 in June. This is bullish for GBPUSD, however the technical setup is bearish.

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