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USD/JPY: upward momentum maintains 20 September 2019, 14:15

USD/JPY: upward momentum maintains 20 September 2019, 14:15 Scenario Timeframe Weekly Recommendation BUY Entry Point 1...

Sep 11, 2019

GBP/USD: pound strengthens slightly 11 September 2019, 09:57


Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 1.2390
Take Profit 1.2504, 1.2530
Stop Loss 1.2308
Key Levels 1.2200, 1.2248, 1.2272, 1.2308, 1.2384, 1.2438, 1.2504
Alternative scenario
Recommendation SELL STOP
Entry Point 1.2300
Take Profit 1.2154, 1.2100
Stop Loss 1.2384
Key Levels 1.2200, 1.2248, 1.2272, 1.2308, 1.2384, 1.2438, 1.2504
Current trend
The British pound showed flat dynamics against the US dollar on Tuesday. Investors were focused on the statistics on the UK labor market. Average Earnings ex Bonus in July slowed down from +3.9% 3MoY to +3.8% 3MoY, which coincided with the forecasts. Average Earnings Index + Bonus for the same period increased from 3.8% 3MoY to 4.0% 3MoY. The Unemployment Rate in July for 3 months fell from 3.9% to 3.8%, although analysts did not expect any changes. Claimant Change in August increased from 19.8K to 28.2K.
Thus, investors were somewhat reassured regarding a possible recession in the British economy. Nevertheless, despite the very decisive actions of the British Parliament, the threat of a hard Brexit still remains. The Parliament rejected the bill on holding of early elections, but soon it will have to go on an extraordinary recess until mid-October.
Support and resistance
On the D1 chart, Bollinger Bands demonstrate a tendency to reverse into a horizontal plane. The price range expands, freeing a path to new local highs for the "bulls". MACD indicator is growing, keeping quite stable buy signal (located above the signal line). Stochastic, having approached its highs, reversed into the horizontal plane indicating overbought pound in the ultra-short term.
One should keep the existing long positions in the short and/or ultra-short term until the situation is clear.
Resistance levels: 1.2384, 1.2438, 1.2504.
Support levels: 1.2308, 1.2272, 1.2248, 1.2200.


Trading tips
To open long positions, one can rely on the breakout of 1.2384. Take profit — 1.2504 or 1.2530. Stop loss — 1.2308. Implementation time: 1-2 days.
The rebound from 1.2384 as from resistance with the subsequent breakdown of 1.2308 can become a signal to new sales with target at 1.2154 or 1.2100. Stop loss — 1.2384. Implementation time: 2-3 days.

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