Forex Analysis & Reviews: Overview of the GBP/USD pair. March 19th. Ahead of the Fed meeting


The GBP/USD pair broke out of the flat and attempted to resume the uptrend. But we still expect a resumption of the downward movement with targets at 1.2543 and 1.2512. The market still very reluctantly buys the dollar and sells the pound, completely ignoring the fundamental and macroeconomic background. This week, it can easily interpret the received information in favor of the pound, even if it is in favor of the dollar. Formally, long positions can be considered when the price is above the moving average, but now the long-awaited consolidation below the moving average has occurred. Therefore, we support any sales of the pair. Explanations for the illustrations: Linear regression channels - help determine the current trend. If both are pointing in the same direction, it means the trend is currently strong. The moving average line (settings 20.0, smoothed) - determines the short-term trend and the direction in which trading should be conducted now. Murray levels - target levels for movements and corrections. Volatility levels (red lines) - the probable price channel in which the pair will spend the next day, based on current volatility indicators. CCI indicator - its entry into oversold territory (below -250) or overbought territory (above +250) indicates that a trend reversal towards the opposite direction is approaching.


Analysis are provided by InstaForex.


Read more: https://ifxpr.com/43k0uXb