|Day's range||0.712 - 0.716|
|52-week range||0.6974 - 0.8255|
You’re watching this week’s first Daily Trading Signals. Here’s how the interbank sentiment compares with the technical models at 8 AM GMT.
The pair pulled down significantly during the Friday’s session reaching towards the 1.24 level which offered a bit of support. Overall, the market is in general uptrend and pullback like this offers a good buying opportunity. If the market further breaks down, the 1.23 level and 1.21 level is going to offer maximum support. All the pullbacks are a technical move based on the recent highs and buyers will get attracted to take this market forward. …Read MoreGBP/USD
The British pound rallied during the week, breaking above the 1.40 level again. We are giving back some of the gains, but ultimately, I think we are in a range of consolidation, perhaps trying to build up the necessary momentum to break above the 1.43 level. I think the market is heavily supported underneath, and therefore I believe that buying on dips makes sense.
The British pound has broken down significantly during the trading session on Friday, reaching down towards the 1.40 level. This is an area that should be somewhat supportive, based upon a large, round, psychologically significant level.
The pair has been bullish through the Thursday’s session as it reached the 1.25 level which is a psychologically important level. The British Pound rallied significantly during the Thursday’s session as it broke above the 1.40 level which was significantly resistive. Yesterday’s move in the market is a very positive development and should continue to rally for next few sessions reaching towards the 1.43 level.
The British pound rallied a bit during the trading session on Thursday, slicing through the 1.40 level. This is a good sign for the British pound going forward, and as I record this looks like we may be ready to pull back a little bit too retest the 1.40 handle.
CPI was better, USD got weaker, definitely, there is a logic behind it but today we will focus on the technical analysis. Here we were getting the sell signal for the USD even before the data hit the screens.
The market was very noisy during the trading session on Wednesday, as it was for all pairs involving US dollar. The pair initially went down to test the support at 1.23 level but then shot higher at once reaching towards the 1.24 level. The pair is now aiming to reach towards its next target of 1.25 level which is psychologically important level.
The British pound has drifted a bit lower during the trading session on Wednesday but found enough support underneath to turn things around and rally significantly. As a record this, we are testing the vital 1.40 level.
Euro/Dollar’s short and long term indicators are mostly neutral, but the mid term shows mixed results. The close to 25% long interbank is bullish. The Cable has 6 neutrals in both the short and long terms.
The GBP/USD has been consolidating within the 1.3866-1.3916 zone and we can see a clear congestion without any clear breakout to the upside. UK January CPI remained at 3.0% contrary to the 2.9 % forecast. Technically the price has been supported at 1.3866-76 and while the price bias remains bullish, the pair needs to make a strong 1h candle above 1.3920 in order to proceed further up. Clear break or 4h close above 1.3920 should target 1.3942, 1.3983 eventually reaching 1.4035 W H4 level. However a break below 1.3840 might go for a retest of 1.3799.GBP/USD Congestion Zone 1.3866-1.3916
The pair is now expected to go higher towards the 1.24 level and then towards 1.25 level eventually from here which is a large, round, psychologically significant level.The pair has massive support around the 1.21 level underneath which is unlikely to be broken. The British Pound initially rallied higher during the Tuesday’s session but got enough resistance higher and pulled back. The 1.40 level above is going to be important and also a resistance barrier.
The GBP/USD pair initially rallied on Tuesday but found enough resistance near the 1.3925 level to roll over a bit, testing the 50 EMA again. Ultimately, I think that the 1.40 level above is going to continue to be important, but I also believe that it will be broken.
European equities have stumbled as the U.S Dollar has become weaker. Japanese equities traded lower this morning, but the Shanghai Shenzhen and Hang Seng were positive. Core Consumer Price Index data will come from the States tomorrow, along with Retail Sales.
Having reversed from nearly two-month old ascending trend-line support, the EURUSD seems heading towards the 1.2360 and the 1.2400 nearby resistances, which if broken could further escalate the pair’s recovery in direction to the 1.2430 and then to the 1.2475 numbers. Alike EURUSD, the GBPUSD also witnessed a pullback and is rising in direction to the 1.4000 round-figure but it’s further upside may be confined by the 1.4080-85 resistance-zone. If the quote fails to sustain its latest up-moves, the 1.3830 and the 1.3750 might act as immediate rests for the pair ahead of reigniting the importance of 1.3685-80 support-confluence, including 50-day SMA and three-month old upward slanting trend-line.
The pair went sideways during the yesterday’s session as it is consolidating around the 1.2250 level for last few sessions. This week could be the turning point for overall currency market as it is expected that the US Dollar will resume its downtrend and value hunters will likely to get involved from here. The British Pound initially tried to rally during the yesterday’s session but struggled to get past the 1.38 level and pulled back.