Figure 2: The GBPUSD on a daily chart
The key levels of support and resistances are:
is in the band 1.2500 - 1.2570. The upper limit of the band is on EMA 50 and there is also 61.8% Fibo from the distance FH, which is the movement for the month of March.
is on the level of 1.2700 - 1.2750.
is in the zone 1.2800-1.2850. This is the level of SMA 100 moving average. At the same time, there is a Fibo of 78.6% of the FH movement.
is located in the band 1.2150 - 1.2230.
is in the band around level 1.1400 - 1470.
is around 1.10, which is a strong psychological level.
In addition, we present the overall market sentiment according to the COT (Commitment of Traders) report, which is presented every Friday:
||Data as at
|Data as at
|Data as at
|Data as at 20/3/2020
||Data as at 13/3/2020
|The British pound
|The USD index
Last week, big speculators lowered net positions in the British pound sterling. This is the fifth decline in a row. Speculators, on the other hand, strengthened overall net positions in the US dollar, which, despite bad macroeconomic data in the US, confirms that in times of crisis the dollar serves as a strong reserve currency.
What awaits us this week?
It is not yet known when the next stages of the trade agreement negotiations will take place.
There are no significant economic news scheduled for this week in Britain. The focus will thus be on the US, where retail sales will be published on Wednesday and claims for unemployment insurance on Thursday.
In addition, the development of the coronavirus contagion and the measures taken in this context should be monitored on an ongoing basis.
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