GBP-USD Forex Technical Report for Wednesday, January 21 2015

 

SUMMARY:

The major trend of GBP/USD is bullish. Prices are sustaining below the falling trendline with a positive bias. Today if the pair breaks the psychological level of 1.5180 at upside we can expect it to test the level of 1.5200/1.5230. RSI is also sustaining in buying territory supporting the ongoing trend. MACD line has recently break the zero line,indicating the up trend in the market.

STRATEGY  

GBP/USD is successfully sustaining on higher level & looking further bullish on charts. One can go for buy on dips strategy for this pair for intra day to mid term positions.

FOREX hike in Sterling

United Kingdom's currency rates over United States of America's dollars' is one of most traded forex exchange pair which tracks development of the major developed economies and sets a trend for other currency pairs.

For free Forex signals trial click here 

Great Britain's Pound (GBP) traded almost flat against dollar holding its stable rates on Thursday after recovering from its lowest bench point of 10-months recorded on Monday.

Sterling fell on rising announcement of Scotland's independence which brought its forex values to an unexpected slowdown. Though, GBP/USD traced a recovery path, concerns over independence of Scotland are likely to hold high risk quotient on GBP trading.

The latest trading quotes of pair reported slipping at 0.06 percent with summarizing trade value at 1.6201 today. According to yesterday's data, the pair located trades around the levels of 1.6050 holding the weakest level since the fall of November 2013.

The range bounds for GBP/USD for Thursday trading is between 1.6100 supporting level with resistance at 1.6280 level.

British sterling climbed up in trade after the country launched a new poll to recheck the data produced by YouGov research. The new opinion poll supported the campaign posting NO to Scottish independence as 53 percent attendants voted against the move.

Therefore, Scotland's independence is the biggest concern for UK markets and it's currency's valuation in forex trade.

In other trades also, sterling climbed higher against the world currencies, with EUR/GBP sinking 0.06 percent floating at 0.7962, compared to its yesterday's hike coming to three-month highest record at 0.8065.

GBP/USD lowers despite low US job data

GBP and USD

United Kingdom and United States exchange rates in Forex markets moved up as sterling shone in GBP/USD pair, as USD slid with disappointing US job report published over the weekend.

 For free Forex Signals trial click here

The gain in forex market fell back as political concerns in Scotland plunged the gain to record 10-months lowest rate of GBP/USD of 1.6165 falling over a percent in early trade on Monday. The fall kept the outlook of the pair bearish in the market as GBP/USD recorded last lowest on 26 November 2013 at 1.6222 dipping 0.7 percent.

Great British Pound shed its gains after vote for independence of Scotland resulted in favor of the move. Sterling is likely face more in the coming 10 days till September 18 when final decision on Scottish independence is framing out.

Against the most popular forex Asian currency, sterling dropped to its three-months lowest record reporting at 169.68 yen (GBP/JPY), after which it settled between the levels hitting highest at 170.41 yen.

On technical charts, sterling is trading in between $1.6000 and $1.6100 marked as long-term support levels according to 100-week and 200-week moving averages against USD.

European benchmark currency, Euro is trading under pressure after ECB's decision of bringing down interest rates after last Thursday's meeting. EUR/USD tripped down to 1.2950 nearing its 14-months' lowest record at 1.2920.

Australian dollar worked its way up in early trade as its stabilized markets cued up with falling USD on the back of unexpected lowered US job data. AUS/USD climbed 0.1 percent coming at 0.9369, with a stronger result of 0.9403 posted on last Friday's closing breaking its previous record set in July.

NEWS to watch for in the coming week

Tuesday, September 9
The U.K. will publish data on industrial and manufacturing production along with a report accumulated on the data of trade balances. Another highlight of the day is coming from BoE Governor Mark Carney who will share his views in Manchester, USA.

Wednesday, September 10
BoE Governor Mark Carney with other monetary policy committee members will check up the reports of inflation and present the report highlighting economic outlook to the Parliament’s Treasury committee members.

Thursday, September 11
The U.S. will post its first weekly report commenting on its initial jobless claims.

Friday, September 12
U.S. will publish data on retail sales, accumulated by the government on the basis of measurement of consumer spending, which forms majority of overall economic activity. Another important report coming into picture is primary reports presenting consumer buying sentiments.