Thursday, December 29, 2016 9:12:05 AM
Analysis on the currency pair GBP / USD. Results of the year
General analysis.
In 2016 the currency pair GBP / USD was quite difficult.
In terms of important fundamental data was a lot of key decisions from the UK and United States as well. his may include «Brexsit», Trump's election victory, increasing of the FED interest rate and even the OPEC decision to cut oil production.
All these factors were a powerful catalyst for the pair GBP / USD and summing the dry residue we can said that the by the results of 2017 the currency pair GBP / USD has lost about 2300 points.
First, the decision to Brexsit pulled the price down hit quite a long channel for GBP / USD. Further gradual strengthening of the dollar has continued to reduce the price to record lows and now the price is trading at 1.2270.
The last two and a half years the pair is in the long-term downtrend and at the moment there are no preconditions to expect stop the decline.
Speaking about the prospects for 2017 it should be noted that much will depend on global economic factors. The first important factor is the implementation of the OPEC countries agreements. If all goes according to plan and production significantly reduced, we can expect a reduction scenario to continue.
Another important indicator will be the Fed's policy in terms of the rate increase. They promised next year to raise interest rates at least three times, which of course will continue to strengthen the dollar. However, they are unlikely to be addressed to increase the rate three times in one year.
Graph 1
Speaking about short and medium term at the moment on the graph, we see penetration of the price band downwards and fixing prices below the support level.
Given the general downward trend on GBP / USD and the presence of signals for sale we can confidently expect continuation of decrease in the medium term.
Now, there are all prerequisites for the so-called back-testing, from where the most profitable will be opened for sale.
Graph 2
General analysis.
In 2016 the currency pair GBP / USD was quite difficult.
In terms of important fundamental data was a lot of key decisions from the UK and United States as well. his may include «Brexsit», Trump's election victory, increasing of the FED interest rate and even the OPEC decision to cut oil production.
All these factors were a powerful catalyst for the pair GBP / USD and summing the dry residue we can said that the by the results of 2017 the currency pair GBP / USD has lost about 2300 points.
First, the decision to Brexsit pulled the price down hit quite a long channel for GBP / USD. Further gradual strengthening of the dollar has continued to reduce the price to record lows and now the price is trading at 1.2270.
The last two and a half years the pair is in the long-term downtrend and at the moment there are no preconditions to expect stop the decline.
Speaking about the prospects for 2017 it should be noted that much will depend on global economic factors. The first important factor is the implementation of the OPEC countries agreements. If all goes according to plan and production significantly reduced, we can expect a reduction scenario to continue.
Another important indicator will be the Fed's policy in terms of the rate increase. They promised next year to raise interest rates at least three times, which of course will continue to strengthen the dollar. However, they are unlikely to be addressed to increase the rate three times in one year.
Graph 1
Speaking about short and medium term at the moment on the graph, we see penetration of the price band downwards and fixing prices below the support level.
Given the general downward trend on GBP / USD and the presence of signals for sale we can confidently expect continuation of decrease in the medium term.
Now, there are all prerequisites for the so-called back-testing, from where the most profitable will be opened for sale.
Graph 2
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