Subscribe to RSS

GBP/USD Forecast: Weak recovery does little to rattle bears

GBPUSD

The GBP/USD pair witnessed a technical recovery on Monday as the Asian and European desks ditched the US dollar. The cable rose to a high of 1.5128, before trimming gains to close the day around 1.5113. the USD did find some love in the US session, but still, the markets chose not to extend Friday’s USD rally. No major UK data is due for release today . US calendar is light this week with only retail sales due on Friday, which too may not alter rate hike bets now as the markets now consider the December rate hike as a done deal.

Technicals – Retest of Friday’s low?

Sterling’s recovery to 1.51 on Monday following a 400-pip sell-off last week represents a technical correction triggered by oversold RSI on the hourly and 4-hour time frame. Usually the first strong sign of reversal from a sharp sell-off; like the one seen last week; comes in the form of bullish RSI divergence. At the moment, the hourly RSI is back above oversold region and the 4-hour RSI is attempting to recover above the same. However, the daily RSI is below 50.00 and is still yet to hit the oversold territory. Overall, a re-test of Friday’s low at 1.5025 and a possible dip to sub-1.5 levels appear possible. On the other hand, a failure to break below 1.5087 (61.8% of Apr-Jun rally) could be followed by a rise to 1.5163 (Sep 4 low).

EUR/USD Analysis: Inverted hammer & weak stocks could trigger recovery

EURUSD

The EUR/USD pair clocked a high of 1.0762 on Monday, before the USD found some love in the NY session resulting in a daily close at 1.0751 levels. At the moment, the currency pair is trading around 1.0748 levels.

Focus on Stocks

As mentioned in the Tip TV slide yesterday, the increased odds of Fed tightening in December did result in the drop in the US and European equities on Monday. However, the EUR saw a weak recovery as the sentiment is extremely bearish (due to Fed-ECB divergence). Most major players have called for the pair to re-test 1.05-1.04 and the talk of parity is slowly gaining traction. But the stocks could play a spoilsport. The investors could get nervous and ditch stocks as we head closer to December Fed meeting, thereby triggering EUR recovery. The China CPI number printed less than expected and could trigger speculation of more easing. But talk of PBOC easing is unlikely to support equities, since the Chinese rate cuts in the last six months have had little long lasting effect on risk appetite.

Technicals – Inverted hammer on daily charts

The inverted hammer on the daily charts, coupled with the oversold nature of the RSI on the intraday timeframe has increased the odds of a technical correction in the pair. The Euro is likely to take out 1.0758 (76.4% of Mar-Aug rally) and rise to 1.08 levels. Above 1.08, the pair faces multiple resistance in the zone of 1.0820-1.0850 area. On the downside, a repeated failure to rise above 1.0758 followed by a break below 1.07 would expose 1.06 handle.

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

100% Withdrawable Bonus on your First Deposit – NordFX

100% Withdrawable Bonus on your First Deposit – NordFX(0)

Up to 150% Bonus for a First Time to binary options Account. For a perfect start, we offer you a 150% bonus for a first-time $5,000 deposit. Link:  Up to 150% Bonus for a First Time Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Link:  DemoCup contest  prize fund is $42000 Available to:

$10 Free Credited into your account – Champion FX

$10 Free Credited into your account – Champion FX(0)

$10 Free Welcome Credited Bonus into your account. Sign up for a ChampionFX Cent live trading account today and get a Free Welcome Forex Credited Bonus worth USD 10 Link:  $10 Free Credited Available to: New and Existing Traders. Ending Date: 31 December 2018 Bonus Offer: $10 Free Welcome Credited into your account to All

Monthly Live Forex Trading Competition – Tickmill Ltd.

Monthly Live Forex Trading Competition – Tickmill Ltd.(0)

Forex Monthly Live Trading Competition. Put your forex trading skills to test and win up to $1000 every Month! Forex Live Trading Competition is only available for clients of Tickmill Ltd.(FSA Regulated) Link:  Weekly Demo Race Trading Contest Link:  $30 Free Welcome Bonus Offer Link:  Forex Monthly Live Trading Contest Available to: All new traders

Get $1500 Forex No Deposit Welcome Bonus – InstaForex

Get $1500 Forex No Deposit Welcome Bonus – InstaForex(0)

Get $1500 No Deposit Forex Bonus from InstaForex no need to risk your own money if you have already got funds to earn more money. The $1500 No Deposit Free Bonus from InstaForex is an exciting opportunity to start Forex live trading. Link:  $500 Forex No Deposit Free Bonus Link:  $1000 Forex No Deposit Free

Up to 50% Welcome Bonus on Each Deposit – Fort Financial

Up to 50% Welcome Bonus on Each Deposit – Fort Financial(0)

Up to 50% Welcome Bonus of Every Deposit to All New and Existing Traders. You Deposited $1000 on your account, chose a 50% bonus and got 500 extra dollars to the initial deposit amount. Link: $888 Extra Bonus Amount Promotions Link:  $5 Forex No Deposit Welcome Bonus Link:  Up to 50% Bonus of Every Deposit

300 USD No Deposit Forex Welcome Bonus – CARRAX

300 USD No Deposit Forex Welcome Bonus – CARRAX(0)

300 USD No Deposit Forex Welcome Bonus for 30 calendar days for real trade in the forex market. Only Carrax verified users may participate in the 300 USD No Deposit Forex Welcome Bonus Promotion. Link:  300 USD Forex No Deposit Bonus Withdrawal: Only profits can be withdrawn after 30 days of having the account active.

FX Zone Currency Capital Forex Trading Contest – FXTM

FX Zone Currency Capital Forex Trading Contest – FXTM(0)

FX Zone Currency Capital Trading Contest final Bid Central. Sharpen your forex trading skills completely RISK-FREE as you enter ForexTime Broker simulated forex world of 2017 the FX Zone Currency Capital Contest. Link:  FX Zone Currency Capital Contest Link:  $25 Per Referral Earn up to $10000 Link:  Receive $30 Tradeable Credit Bonus Link:  Loyalty Cashback

$123 Free No Deposit Welcome Bonus – FBS Broker

$123 Free No Deposit Welcome Bonus – FBS Broker(0)

$123 Free No Deposit Forex Bonus of FBS Broker all new members to get a Free bonus of $123 without initial deposits and start a risk-free forex liveForex Trading. Link:  $123 Free Forex Bonus Promotion Link:  100% Deposit Bonus Promotion Link:  $88.8 Lucky No Deposit Bonus (for Malaysian traders) Available to: All new traders Ending

$50 Free No Deposit Bitcoin Bonus Special Promo – UFX

$50 Free No Deposit Bitcoin Bonus Special Promo – UFX(0)

$50 Forex No Deposit Bitcoin Bonus Special Promotion to all new trading account holder. Start Forex Trading Bitcoin with UFX and  Get a $50 No Deposit Bonus Link:  $50 Forex No Deposit Special Bonus Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack Promo Link:  $5000 BitCoin Rewards Bonus Promo Available to:

Forex Special Promo FREE Forex Trading Signals – CMSTrader

Forex Special Promo FREE Forex Trading Signals – CMSTrader(0)

Forex Special Promotion for our new clients. Open account and get our FREE Forex Trading Signals with high success claim them Now 91% Success! Link:  Top Social Copy Trading Platforms Link:  FREE trading signals Special Promotion Ending Date:  31 December 2018 Available to:   New Clients only Bonus Offer: Get FREE forex trading signals Special promotion

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories