GBP/USD | British Pound to US Dollar Trading Analysis

Source: PaxForex Premium Analytics Portal, Technical Insight

Britain: annual CPI increased 0.6% in December:

• British CPI rose 0.6% y/y in December vs.  +0.5% forecast;

• Monthly CPI rose +0.3% in December vs +0.2% forecast;

• GBP/USD trades near daily highs of 1.3669 after data release;

• According to the Office for National Statistics, Britain's CPI rose 0.6%/year in December vs. +0.3% in November and a forecast of +0.5%;

• Monthly growth was +0.3% vs. +0.2% forecast and -0.1% previously;

• Growth in the core index was +1.4% y/y vs +1.1% in November and +1.3% forecast.

GBP/USD, 30 min

Pivot: 1.3652

Analysis:

Provided that the currency pair is traded above 1.3650, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 1.3652
• Take Profit 1: 1.3720
• Take Profit 2: 1.3745

Alternative scenario: 

In case of breakdown of the level 1.3650, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 1.3650
• Take Profit 1: 1.3620
• Take Profit 2: 1.3600

Comment:

RSI shows ascending momentum during the day.

Key levels:

GBP/USD, D1

Pivot: 1.3669

Analysis:

While the price is above 1.3350, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 1.3669
• Take Profit 1: 1.3750
• Take Profit 2: 1.4000

Alternative scenario:

If the level 1.3350 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1.3350
• Take Profit 1: 1.3130
• Take Profit 2: 1.2910

Comment:

RSI indicates that an uptrend continues in the medium term.

Key levels:

We also advise you to pay attention to the following currency pairs for intraday trading:

EUR/USD – buy above 1.2105 with 1.2140 and 1.2160  targets as Take Profit. Alternative scenario - if the level 1.2105 is broken-down, sell with the TP 1.2090 and 1.2075.
USD/CAD - short positions below 1.2655 with 1.2565 and 1.2530 targets as Take Profit. Alternative scenario - if the level of 1.2655 is broken-out,  buy with the targets 1.2685 and 1.2720 as Take Profit.
NZD/USD – buy above 0.7178 with 0.7258 and 0.7275 as Take Profit targets. Alternative scenario - if the level of 0.7178 is broken-down, you should consider selling with the targets 0.7149 and 0.7132 as Take Profit.