Technical analysis of GBP/USD for June 07, 2018

analytics5b19176cc4b83.png

GBP/USD is expected to trade with a bullish outlook. The pair posted a rebound from 1.3395 (the low of June 6) and broke above its 20-period and 50-period moving averages. The relative strength index has just landed on its neutrality level at 50 and is turning up. To conclude, as long as 1.3415 is not broken, look for a bounce to 1.3495. A break above this level would trigger a new challenge to 1.3525.

Fundamental Overview: Sterling is up on hopes of a soft Brexit and because some investors think the Bank of England will raise interest rates again this year.The U.K. government hasn't presented a set of guidelines for the future relations between the EU and the U.K., which may indicate a hard Brexit.

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 1.3495, 1.3525, 1.3560

Support levels: 1.3395, 1.3355, 1.3310

The material has been provided by InstaForex Company - www.instaforex.com