|Day's range||1.315 - 1.327|
|52-week range||1.2591 - 1.4377|
The pair staged lower at the open in the Monday’s session due to some political concerns emerging out of Europe with news about Angela Markel being ousted. The 1.17 level above is massively resistive and as well as 1.18 level which the market needs to clear above in order to reverse the bearish sentiment. The 1.30 level underneath is going to be a massive support level.
While there was risk yesterday from Central Bankers very little was said to move the market. Instead, the Trade War narrative boiled up again with the latest headlines that US President Trump is planning to impose an additional $200Bn in tariffs against China.
EURUSD continues falling and updating its short-term lows. The point is that investors are once again in search of “safe haven” assets because global “trade wars” are reviving.
The British pound has fallen during the Monday session to open up the week, as we continue to see a bit of a “risk off” type of trading attitude. It’s likely that we will continue to struggle in general, as we have seen such a massive selloff as of late, and of course the Federal Reserve looks likely to raise interest rates, something that is very unique in the world of central banks right now.
The pair managed to reverse its positions in the Friday’s session after falling vehemently the previous session post the announcement from ECB. The market looks very concerned about the trade wars and its effect on the global trade scenario.
The British pound fell during the week, slicing through the 1.33 level as the US dollar gain against most majors. We tested the bottom of a hammer from a couple of weeks ago but did bounce on Friday to show signs of resiliency. At this point, we could be looking at the next major move just waiting to happen.
The British pound rallied significantly during the trading session on Friday, reaching towards the vital 1.33 handle. This may be a bit of a turnaround for the downtrend that started on Thursday, but I think that this could be a bit of a “dead cat bounce.”
With two-month long downward slanting trend-line restricting the GBPJPY’s upside, the pair continues to signal the 146.20 support re-test unless clearing the 147.75 TL barrier. Meanwhile, pair’s successful break above 147.75 trend-line enables it to claim the 148.10 and the 148.70 resistances but the 200-day SMA level of 149.80, adjacent to 150.00 psychological-magnet, could disappoint the Bulls.
The Euro fell hard during the yesterday’s session wiping out the entire up move after ECB announced that it is not going to change the interest rate and cutting the QE by only half, which was the big dampener for the market. The British Pound initially rallied a bit but fell hard afterwards in the yesterday’s session after the ECB announcement came. The AUD fell hard during the yesterday’s session reaching towards its major trend line as the market turned negative due to the knock-on effect of ECB announcement.
The British pound broke down significantly during the day on Thursday, after initially trying to rally towards the 1.3450 level. That’s an area that has been resistance in the past, and we have broken down rather significantly from there. The 1.33 level underneath continues to be very important on longer-term charts, so I think that we could get a bit of pressure there.
The Euro had a very quiet trading session on Wednesday, hanging around the 1.1750 level as the market is looking for some kind of momentum to push the market higher. The market in due course will remain volatile and will be looking towards Federal Reserve on the issue of further interest rate hike. The British Pound fell significantly during the yesterday’s session reaching towards the 1.33 level, which was earlier a resistance level as the market was looking for FOMC statement on late Wednesday.
The U.S. dollar pared earlier losses on Wednesday after the Federal Reserve raised its key interest rate by 25 basis points. The move had been widely anticipated by market participants and marks the second rate hike of the year out of at least three expected from the U.S. central bank. Focus now shifts to Fed Chairman Jerome Powell who will hold a press conference to discuss the policy update at 2.30 p.m. Eastern.
Also, the market is looking forward to the outcome of ECB meeting on Thursday, that could determine the future of QE. EU walking away from the QE will definitely push this market higher towards the 1.20 level. The British Pound rallied a bit during the Tuesday’s session but got enough resistance around the 1.3425 level and fall significantly wiping out the entire up-move.
The British pound initially rallied during the trading session on Tuesday but ran into enough trouble at the 1.3425 level to turn around and fall significantly, and even wipeout almost the entirety of the move. However, we have bounced from there, so I think this shows that we are going to continue to see a lot of choppiness more than anything else.
The U.K. House of Commons on Tuesday rejected a proposal that would have given Parliament the final say on terms of the U.K.'s exit from the European Union if no deal could be reached with European Union negotiators. The vote of 324 to 298 is considered a win for Prime Minister Theresa May. The upper House of Lords in March sought a "meaningful vote" amendment to the bill that takes the U.K. out of the EU.
The Euro rallied slightly during the Monday’s session due to the positive developments coming out from Italy as it is leaning towards staying in the common currency which is a huge boost to the Euro. The market is also looking towards the historic North Korea-US summit, which will make this market dance. In the long term, the market is expected to continue bullish with a target of 1.1850 and 1.20 on the top. …Read MoreGBP/USD
The British pound fell significantly to start the week, after initially trying to rally, but finding a significant amount of resistance at the 1.3450 region. By doing so, we have reached below, and tested the bottom of what could be thought of as a downward channel on the hourly chart.
Britain’s statistics continue to indicate a slowdown in the UK economy. Today’s data showed a decline in industrial production by 0.8% during April against a forecast growth of 0.1%.
The Euro started off weak against the USD in the Friday’s session, reaching towards the 1.1725 level, perhaps in a bit of risk off move after less than impressive German economic data came out. But, the pair witnessed some bounce from the lower levels and it is likely to move towards the 1.1850 level. Also, the prospects of trade wars with the US and other European nations getting expanded and with that the market will remain volatile and noisy. …Read MoreGBP/USD