HomeContributorsTechnical AnalysisBears Continue to Open Short Positions on GBPUSD

Bears Continue to Open Short Positions on GBPUSD

Janet Yellen announced a possible increase of the interest rates at the meeting on Friday, March 3. The stable growth of the US economy is main condition for that increase. FedWatch Tool is at the level 84.1% level currently.

FedWatch Tool

Source: cmegroup.com

Our attention is glued to the labor market of the United Stated. Many experts think that the growth of the Nonfarm Payrolls will lower by 16.3% to 190,000. They also anticipate the decrease of the unemployment rate from 4.8% to 4.7%. But the average hourly earnings are likely to increase to 0.3% according to the experts’ expectations.

Source: investing.com

We will wait for an optimistic report as the last statistics from the US was at a high level. The demand for USD should grow.

The technical analysis of the GBP/USD currency pair

The key levels:
support: 1.2175, 1.2050
resistance: 1,2300, 1.2400, 1.2550

GBP may weaken against USD. The technical indicators tell us about the sellers’ strength. 50 MA is below 200 MA, while MACD has moved to the negative zone. This histogram continues to decline at the moment.

I recommend traders to open short positions, if the price reaches the 1.2175 support level and fixes there. The pair may move to 1.2050. I advise to use a trailing stop while trading this currency pair.

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