Trading recommendations for GBP / USD on August 20
Analysis of transactions
Good data on UK inflation failed to raise the rate of the British pound in the market. And although a buy signal at the level of 1.3250 was formed in the morning, it did not lead to any significant growth on the GBP / USD pair. Nonetheless, sell transactions from the level of 1.3208 gave more than 50 points of profit, thereby blocking the losses realized in the morning.
The rumors of a progress in the negotiations on a new aid package to the US economy increased demand for the US dollar. In addition, any good news on the US labor market, which will be released today, will be another impetus on the rise of the dollar and sinking of the British pound in the market.
- Buy positions when the quote reaches a price level of 1.3112 (green line on the chart), targeting a rise to the level of 1.3161 (thicker green line on the chart). However, growth will only occur if data on the US labor market comes out worse than the forecasts. Nonetheless, take profit at the level of 1.3161.
- Sell positions after the quote hits a price level of 1.3070 (red line on the chart). A price drop will occur if data on the US labor market indicates another decrease in the number of initial applications for unemployment benefits. Nevertheless, the target and take profit level is 1.3021.
