|Day's range||154.294 - 153.906|
|52-week range||149.0873 - 153.9063|
The British pound has been very noisy during the trading session on Wednesday, as we reached towards the 153 handle again. This is an area that I am paying a lot of attention to.
The British pound initially fell significantly during the week, reaching towards the 150-handle underneath. That level looked very bullish in general, and that being the case it’s likely that the market continues to find plenty of interest underneath, and I think we will go higher.
The British pound rallied significantly after gapping higher at the open of the week against the Japanese yen. We have cleared the vital 153 level, which is a very bullish sign, and could send this market much higher.
The British pound shot much higher against the Japanese yen during the trading session on Thursday, reaching towards the 153 level, which is a massive signal just waiting to happen.
The British pound fell significantly against the Japanese yen initially on Tuesday, but it appears that the 152 level is starting to offer enough support to suggest that the buyers are returning. A break above the 152.25 level would be a very bullish sign indeed. Keep in mind that this pair is highly sensitive to risk appetite.
The British pound rallied slightly during the week, testing the 152.50 level. However, there is bigger fish to fry out there, so given enough time I think that we will make a significant move. Currently, this looks like a market ready to explode.
Neutral models prevail on Euro/Dollar’s hourly chart, but the 4 and 24-hour scales turn bullish with 6 and 7 studies, respectively, and they are in line with the more than 16% long interbank. There’s green across the table for the Pound/Dollar, which sees 6 bullish models in the short-term, 7 in the mid-term and 5 in the long-term, but, in contrast, the interbank is neutral at less than 8% short. Dollar/Yen sees 7 sell prompts on both its short and mid-term charts and 4 neutral signals on its long-term scale, but the technicals are not supported by the interbank, which is bullish at more than 19% long.
The British pound has been very choppy during the trading session on Thursday, as volume wasn’t very large. The market looks like it is ready to consolidate in the short term, but longer-term I am optimistic.
The U.S. Dollar is about to finish 2017 with its worst performance against a basket of major currencies in 14 years despite three rate hikes by the U.S. Federal Reserve and expectations for at least three more in 2018.
The British pound rallied again against the Japanese yen during the week, showing signs of strength. The market looks likely to be bullish overall, but we have a significant resistance just above.
The British pound has done very little during the trading session on Friday, as we continue to suffer a lack of volume. Longer-term, I believe that the markets will go higher, but in the meantime, it’s going to be difficult.
The 24-hour scale is mostly bullish, but the interbank is neutral at less than 14% long, matching the short and mid-term technicals. The Cable sees a mix of green and neutral models on both its short and mid-term charts. The 24-hour scale turns neutral with 5 studies, and it is supported by the less than 6% short interbank.
European stocks markets are mixed as euphoria over a new tax law in the United States is driving riskier assets, Europe is wrestling with ending QE. German wages are rising faster than inflation while French business confidence improves. European stock markets started to recover after a slow start as the rise in EUR and GBP against the Dollar started to stall.
The mid and long-term scales turn bullish with 4 and 6 studies, respectively, but the interbank is neutral at less than 12% long, and it confirms the 1-hour studies. There’s red across the chart for the Cable, which sees 6 sell prompts in the short-term and 4 bearish models in both the mid and long-term, but, in contrast, the interbank is neutral at less than 9% short. Dollar/Yen sees no less than 7 bullish signals on both its 1 and 4-hour charts, and the daily outlook is mostly neutral.
The Bank of Japan will issue their Monetary Policy Statement tomorrow and no major changes are expected. The Yen has been range trading mid-term, but has weakened early this morning against the U.S Dollar and may provide an opportunity for traders to take advantage of its consolidation. The Yen has traded in a weaker manner early this morning and has gone above the 113.00 level against the U.S Dollar.
The mid-term is mostly bullish, and the long-term sees a mix of red and neutral models. Next up is the Cable with 5 neutral models on its hourly chart. The interbank is neutral as well at less than 6% short, matching the 1 and 24-hour models.
Bullish signals prevail on Euro/Dollar’s 1 and 4-hour charts, but the 24-hour scale turns neutral with 5 studies, and it is confirmed by the less than 9% long interbank. All three time ranges bring different results for the Cable, which sees 6 buy prompts in the short-term and 4 neutral models in the mid-term. The long-term is mostly bearish, but the interbank is neutral at less than 8% short, and it supports the mid-term technicals.
The GBP/USD has been sold on rallies recently as the Brexit talks continue to weight on the pound. Technically the pair is very close to the POC. 1.3365-89 is the POC zone ( W H3, EMA89, order block, 61.8 and ideally the pair should stay below the W H4 – 1.3409 to remain bearish. However, it is Monday and we might see some up-and-down price action until the price settles down a bit. Targets are 1.3303 and if we see a clear break below, then 1.3273 and 1.3247 could be next. ...
The mid-term sees 6 neutral models, and the daily outlook is split between red and neutral studies. Neutral at less than 8% long, the interbank confirms the 4-hour studies. The mid-term sees 6 neutral signals, and the long-term brings 5 sell prompts.
The British pound fell significantly during the week, as we continue to see a lot of noise in the market. Keep in mind that this market is highly sensitive to risk appetite, and of course the noise coming out of the negotiations between Great Britain and the European Union.
The GBP/JPY pair continues to be volatile as per usual, initially rallying towards the 152 handle during the trading session on Thursday, but then pulled back to reach towards the 151 handle after that.
Although better than expected UK Earnings triggered the GBPUSD’s bounce, the pair still remains below a short-term ascending trend-line, at 1.3370, that it broke yesterday. Given the prices continue declining after the 1.3245 SMA figure’s break, the 1.3170-60 region, comprising six-month old upward slanting TL, could challenge the Bears. GBPJPY is another GBP pair which took a U-turn after British employment details but still trades beneath recent TL break and hence continue remaining weaker.