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GBPUSD: Forex Technical Analysis – Accelerating growth supports British Pound

By IFCMarkets

Accelerating economic growth supports British Pound

UK GDP grew 0.4% in Q3, above expected 0.3% rate. Will the GBPUSD resume strengthening?

UK economy accelerated unexpectedly in the third quarter 2017: Q3 GDP recorded surprise 0.4% growth over quarter when a steady growth of 0.3% was expected. With inflation rising to 3% in September from 2.9% on year in August this raises chances the Bank of England may increase borrowing costs at its November 2 meeting next week.

GBPUSD

On the daily chart the GBPUSD: D1 has breached above the 50-day moving average MA(50).

We believe the bullish movement will continue after the price breaches above the upper Donchian boundary at 1.3326. It can be used as an entry point for a pending order to buy. The stop loss can be placed below the fractal low at 1.3087. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop-loss level (1.3087) without reaching the order (1.3328) we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Technical Analysis Summary

Position Buy
Buy stop Above 1.3326
Stop loss Below 1.3087

Market Analysis provided by IFCMarkets

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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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