Trading recommendations for GBP / USD on August 26
Analysis of transactions
Pound jumps upward due to weak US consumer sentiment report, but long positions set at gave only 30 points of profit, as movement ended at a price level of 1.3165.
Further growth factor could be the upcoming US orders for durable goods report, as such will indicate the confidence of consumers on their financial positions in the future. Thus, reduced orders will negatively affect the US dollar, decreasing its demand in the market.
- Long positions may be set up from the level of 1.3161 (green line on the chart) to the level of 1.3234 (thicker green line on the chart). Target profit is the price level of 1.3234.
- Set short positions from the level of 1.3119 (red line on the chart) to below, as a breakout of which will certainly lead to a larger price reduction to the support level of 1.3053. However, for this to happen, data on US durable goods orders must come out better than the forecasts. Target profit is the level of 1.3053.