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GBP/USD

Market Opportunities - 07/09/2020

07 September, 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:

  • The GBP fell more than 70 bp against the USD during Monday European session as escalating tensions between the U.K. and the EU are threatening any chances of a post-Brexit trade deal in the coming months.
  • Prime Minister Boris Johnson is also telling local media that a trade deal to govern relations between the U.K. and EU effectively has to be done by October 15, accelerating a deadline that is currently set for the end of the year.
  • On the flip side, the US dollar strengthened against other major currencies due the better than expected economic data in the US last week.
  • According to the Technical analysis, GBPUSD pair breached below 1.3200, pushing price below 20-day Moving average, which can be considered as a first support level. The Daily Relative Strength Index is in downward movement, currently at level of 50, the level that separates uptrend from downtrend. If the pair price manages to fall below RSI of 50 and breach below 1.31505, there is a possibility that the GBP/USD may decrease toward Support 1 level.

GBP/USD September 07, 2020
Current Price: 1.3160

GBP/USD

Weekly

Trend direction

DOWN

Resistance 3

1.3550

Resistance 2

1.3420

Resistance 1

1.3290

Support 1

1.3030

Support 2

1.2900

Support 3

1.2770

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

GBP/USD

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

-3,900.00

-2,600.00

-1,300.00

1,300.00

2,600.00

3,900.00

Profit or loss in €*

-3,301.45

-2,200.97

-1,100.48

1,100.48

2,200.97

3,301.45

Profit or loss in £**

-2,964.20

-1,976.13

-988.07

988.07

1,976.13

2,964.20

Profit or loss in C$

-5,113.29

-3,408.86

-1,704.43

1,704.43

3,408.86

5,113.29

* 1.00 lot is equivalent of 100000 units
** Calculations for exchange rate used as of 11:25 (GMT+1) 07/09/2020
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account Manager regarding their use.
*** Please 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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