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GBP/USD

Market Opportunities - 09/09/2020

09 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 has been falling since last week due to increasing worries about a post-Brexit trade deal between the UK and the European Union which started on Tuesday, September 8. By this moment there is no positive progress in talks which is making a huge pressure on the British Pound.
  • Prime Minister Boris Johnson is also telling local media that a trade deal to govern relations between the UK 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 large sell-off in the last three sessions forcing investors all around the world to shift their investment to safe haven assets such as US Dollar and Gold.
  • According to the Technical analysis, GBPUSD pair breached below psychological level of 1.30, pushing price below 20-day and 50-day Moving averages, which can be considered as a strong downside correction. The Daily Relative Strength Index is also downward movement, currently below 50, the level that separates uptrend from downtrend, closing to the level of 30, which can be considered a first support level. If the pair manages to fall below RSI of 30, there is a possibility that the GBP/USD may decrease toward Support 1 level.

GBP/USD September 09, 2020
Current Price: 1.2955

GBP/USD

Weekly

Trend direction

DOWN

Resistance 3

1.3279

Resistance 2

1.3171

Resistance 1

1.3063

Support 1

1.2847

Support 2

1.2739

Support 3

1.2631

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 $

-3,240.00

-2,160.00

-1,080.00

1,080.00

2,160.00

3,240.00

Profit or loss in €*

-2,742.74

-1,828.49

-914.25

914.25

1,828.49

2,742.74

Profit or loss in £**

-2,462.57

-1,641.71

-820.86

820.86

1,641.71

2,462.57

Profit or loss in C$

-4,247.96

-2,831.98

-1,415.99

1,415.99

2,831.98

4,247.96

* 1.00 lot is equivalent of 100000 units
** Calculations for exchange rate used as of 08:15 (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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