Scenario

Timeframe - Weekly

Recommendation - BUY

Entry Point - 1.4706, 1.4620, 1.4545

Take Profit -1.5085

Stop Loss - 1.4420

Key Levels - 1.4005, 1.4130, 1.4270, 1.4350, 1.4475, 1.4620, 1.4725, 1.4770, 1.4850, 1.5000, 1.5085, 1.5150, 1.5190

Current trend

At the beginning of June, the GBP/USD pair was falling, being under pressure from weak macroeconomic indicators for the UK and concerns about the country’s exit from the EU.

Last week, the Pound managed to strengthen amid a growth in retail sales and the Bank of England’s decision to keep its current monetary policy unchanged. The pair gained more support, as data on US labour market and inflation were quite disappointing.

Further dynamics in the pair is likely to be determined by the upcoming UK’s referendum on EU membership. Some experts believe that the referendum is just a way to get new preferences and remind the EU about an important role of the UK.

Support and resistance

The pair returned into an ascending channel. Technical indicators do not give clear trading signals. It is recommended not to hurry with placing new orders.

Support levels: 1.4620, 1.4545, 1.4475, 1.4400, 1.4350, 1.4270, 1.4195, 1.4130, 1.4055, 1.4005.

Resistance levels: 1.4725, 1.4770, 1.4850, 1.5000, 1.5085, 1.5150, 1.5190.

Trading tips

Long positions can be opened from the current levels and from the key support levels of 1.4620, 1.4545 with the target at 1.5085 and stop-loss at 1.4420.