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GBP/USD

Market Opportunities - 12/08/2020

12 August, 2020

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

GBP/USD downtrend opportunity based On 1.00 Lot Calculation

  • British GDP statistics showed the economy fell 20.4% on a quarterly basis in the second quarter. This makes two consecutive quarters of decline which is the standard economic condition for a recession to be confirmed.
  • BoE is considering cutting its base rate to below zero which together with an expanded bond purchase programme is putting a pressure on British pound.
  • The latest US Non-Farm Payroll report was better than expected in many key prints, which bolstered US Dollar demand.

GBP/USD, August 12, 2020
Pivot point: 1.30644

GBP/USD

Weekly

Trend Direction

DOWN

Resistance 3

1.34969

Resistance 2

1.33601

Resistance 1

1.32393

Support 1

1.28739

Support 2

1.27288

Support 3

1.25920

Example of calculation base on weekly trend direction for 1.00 Lot*

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss Short in $

-4,324.90

-2,956.90

-1,748.90

1,905.60

3,356.10

4,724.10

Profit or loss Short in €**

-3,684.15

-2,518.83

-1,489.79

1,623.28

2,858.88

4,024.21

Profit or loss Short in £**

-3,316.23

-2,267.28

-1,341.02

1,461.17

2,573.38

3,622.33

Profit or loss Short in C$**

-5,758.91

-3,937.32

-2,328.78

2,537.44

4,468.88

6,290.47

* 1.00 lot is equivalent of 100 000 units
** Calculations for exchange rate used as of 09:30 (GMT+1) 12/08/2020
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Senior Account Manager for more details

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