GBP/USD
On Tuesday, optimistic news about the possible readiness of European politicians to come to a conditionally final agreement on Brexit by Monday next week gave encouragement to investors, and the British pound added 51 points. Technically, support was provided by the balance line on the daily scale chart. Indicator lines of balance and trend on a four-hour scale were located in the same area, which increased support. At the moment, the price has almost fulfilled the upper range of the uncertainty, which we talked about yesterday, - 1.3027-1.3167.
Today, important economic data on the UK will be released. GDP for August is expected to grow by 0.1% against 0.3% in July. Industrial production in August is expected to grow slightly by 0.1%, production in the construction sector may decrease to 0.4% after the previous growth of 0.5%. The trade balance for August may deteriorate from 10.0 billion pounds to 10.9 billion pounds. But there is also a chance that the indicators will be better than the forecasts, then investors will try to take the levels of 1.3212 and 1.3240. In case data turns out to be weak, we do not expect a strong decline, as the news on Brexit is increasingly curtailing the ranks of the bulls. In this case, it is possible for the decrease to support the balance line at H4 to 1.3080.
There is a sign of price divergence with the Marlin oscillator on the four-hour chart. On the one hand, this is natural when the price is at the upper limit of the range, on the other hand, the divergence has not yet formed and the growth of the oscillator can continue. To resolve the situation related to the British data.
The exit of the price above the embedded trend line of the 50-week price channel, above 1.3240, will open the prospect of a significant increase in the British pound: 1.3362, 1.3470, 1.3690.
The material has been provided by InstaForex Company - www.instaforex.com