Trading recommendations for GBP / USD on August 19
Analysis of transactions
Bulls took control of the market, so the GBP / USD rate continues to climb higher and higher in the price chart. Buy deals at the price level of 1.3141 towards the level of 1.3175 even brought profit of about 30 pips.
The sharp rise in the pound came after US Treasury Secretary Steven Mnuchin said that there is no expected progress in the negotiations between Republicans and Democrats with regards to a new stimulus package.
- Buy positions when the quote reaches a price level of 1.3250 (green line on the chart), targeting a rise to the level of 1.3294 (thicker green line on the chart). The increase may occur on the grounds of good UK inflation data. Take profit at the level of 1.3294.
- Sell positions after the quote reaches the level of 1.3208 (red line on the chart). However, such a drop will only occur if UK inflation comes out worse than forecasts, and if the latest Fed protocol does not give additional pressure on the US dollar. Nonetheless, the target level is 1.3151, which is also a good area to exit the market.
