Subscribe to RSS

GBP/USD Forecast: Carney could restrict gains around hourly 200-MA

GBPUSD

The GBP/USD pair formed a bullish pinbar formation on Monday and thus extended gains to near 1.51 levels in Asia today. The sell-off in the EUR/GBP ahead of the Thursday’s ECB meeting helped the GBP/USD recover from the Monday’s low of 1.4994. The focus today is on the Bank of England’s Carney’s speech and the UK manufacturing PMI report.

Carney could overshadow UK PMI report

The UK manufacturing PMI for November is seen coming-in at 54.00 from Oct’s 55.5. The inflow of new export orders would be watched out by markets; since the UK’s worsening current account to GDP ratio is a cause of concern and could take a centre stage in 2016.

BOE’s Carney comes a few minutes ahead of the PMI report and thus could push the GBP/USD pair back to around 1.5087 (61.8% of Apr-Jun rally) with his cautious comments on the UK economy. Consequently, the cable may have a hard time rising above 1.5124 (hourly 200-MA) despite a strong PMI report.

Sterling could take out 1.5124 (38.2% of 1.5335-1.4994 + hourly 200-MA) and test 1.5185 (23.6% of July 2014-Apr 2015 plunge) if Carney surprises markets with a slightly hawkish tone and the PMI number prints higher than expected.

On the other hand, a dovish carney coupled with a weaker-than-expected UK PMI report could lead to a failure to sustain above 1.5087 and trigger a sell-off to 1.50 handle.

Technicals – Bullish above 1.5087

Sterling’s bullish pinbar from the 7-month low, followed by a rise to 1.51 levels in Asia today indicates the pair is likely to take out the hourly 200-MA at 1.5124 and test 1.5163 (Sep 4 low) – 1.5185 (23.6% of Jul 14-Apr 15 plunge). On the other hand, a repeated failure to take out 1.5107 followed by a break below 1.5087 (61.8% of Apr-Jun rally) could trigger a fresh drop to 1.5028 (Nov 27 low).

EUR/USD Analysis: Eyes US ISM number

EURUSD

The EUR/USD pair dropped for the fourth consecutive session on Monday. The ECB action appears to have been priced-in by the markets, however, the uncertainty still persists about the kind of action that the ECB will announce this Thursday. This uncertainty is keeping the EUR under pressure, although the magnitude of the daily fall has dropped off late, which again points to the fact that the ECB action may have been priced-in by the markets.

Eyes US data, EU data could be non-event

The Eurozone and German PMI figures could turn out to be non-events for the markets so long as the actual figures are not surprisingly weak/strong. Moreover, the figures are unlikely to influence the ECB and thus markets are likely to turn a blind eye towards the same ahead of Thursday’s ECB event.

The US ISM manufacturing figure could attract attention; especially the employment sub index. The pair could come under pressure solely on the back of a strong employment sub index, since it would increase the odds of a better-than-expected non-farm payrolls report due on Friday.

Technicals – Could test hourly 200-MA

A triangle formation could be seen on the hourly chart and a bullish break from the same could see the pair rise to its hourly 200-MA seen at 1.0630 levels. On the other hand, a bullish break from the triangle formation, but a repeated failure to take out 1.06 could lead to a much sharper sell-off to 1.05 levels.

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

100% Welcome Bonus Plus Daily Free Signals – Trade12

100% Welcome Bonus Plus Daily Free Signals – Trade12(0)

Get 100% Welcome Deposit Bonus and 7-day risk free trade, Boost your trading with a free 100% Welcome Deposit Bonus to your Live Trading Account. Link:   Get 100% Welcome Bonus Link:  50% Exclusive Deposit Bonus Link:  Free Daily Forex Trading Signals Available to: All new clients Ending Date: 31 December 2017 Bonus Offer: Get

25 Euro Forex No Deposit Welcome Bonus – direktbroker-FX

25 Euro Forex No Deposit Welcome Bonus – direktbroker-FX(0)

25 Euro Forex No Deposit Welcome Bonus to all EU and the UK  live Trading Account Holder. Open a real account direct instead of an demo account first and you will get a 25,- Euro Free. Link:  25 Euro Free Welcome Bonus Available to: All new account Ending Date: 31 December 2017 Bonus offer: 25

Up to $250 Cash in Your Expert Advisor – ThinkMarkets

Up to $250 Cash in Your Expert Advisor – ThinkMarkets(0)

Up to $250 Cash in Your Expert Advisor. Make the Move to Think Trader and Cash in Your Expert Advisor for Up to $250* Link:  Up to $250 in Your Expert Advisor Available to: All new account Ending Date: 31 December 2017 Bonus offer: Up to $250 Cash in Your Expert Advisor Bonus to all new

$30 Forex No Deposit Bonus Welcome Promo – XM

$30 Forex No Deposit Bonus Welcome Promo – XM(0)

$30 Forex  No Deposit Bonus Welcome Promo Bonus and 15% Welcome Deposit Bonus, Welcome Bonus brings Real Account clients the best rewards available. Entering the markets and trading with XM enables you to earn from your trades and build your own bonus up to a maximum of $1,000. Link:  $30 Forex No Deposit Bonus Link: 

50% Re-Deposit & 100% Tradable Bonus – Xtream Forex

50% Re-Deposit & 100% Tradable Bonus – Xtream Forex(0)

50% Re-Deposit Tradable Forex Bonus for all of its traders. Every existing and new trader is eligible for this Re-Deposit Tradable Bonus for depositing into their trading account. Link:  100% Tradable Deposit Bonus Link:  35% Deposit Cash Bonus Link:  50% Re-Deposit Forex Bonus 50% Re-Deposit Forex Bonus XtreamForex is glad to announce 50% re-deposit forex

Free $50 No Deposit Bonus and Start Trading – Trade360

Free $50 No Deposit Bonus and Start Trading – Trade360(0)

$50 Forex No Deposit Bonus is available only once for each client. Every verified user can use $50 No Deposit Bonus and get one or several investment accounts. Link:  $50 Forex No Deposit Required Bonus Link:  $280 CashBack Rewards Program Available to: All new account Ending Date: 31 December 2017 Bonus offer: $50 New No

200% Cashback Rebate Bonus up to $10000 – ForexTime

200% Cashback Rebate Bonus up to $10000 – ForexTime(0)

200% Forex Cash back Rebate Bonus up to $10,000, whether they’re first time depositors or returning clients. and get $4 Cashback back for every lot you trade. Link:  Loyalty Cashback Promotions Link:  200% Cashback Rebate up to $10000 Ending Date: 31 December 2017 Available to: All Customers Bonus Offer: ForexTime Rewards Loyalty in Withdrawable Cashback

$50 Free No Deposit Credit Bonus Promotion – GDMFX

$50 Free No Deposit Credit Bonus Promotion – GDMFX(0)

$50 No Deposit Credit Bonus Promotion 2017 to all new account. The $50 no-deposit bonuses is available for clients who open their first registration with GDMFX Link: $50 No Deposit Credit Bonus Promotion Available to: All new account Ending Date: 31 December 2017 Bonus offer: $50 No Deposit Credit Bonus Promotion 2017 to all new account.

100% Deposit Bonus and Forex Free Signals – Trade12

100% Deposit Bonus and Forex Free Signals – Trade12(0)

Forex Free Trading Signals via SMS. EMAIL. SKYPE. WHATSAPP and 100% Welcome Deposit Bonus to your Live Trading Account. Link:  Free Daily Forex Trading Signals Link:  Get 100% Welcome Deposit Bonus Link:  50% Exclusive Deposit Bonus Available to: All new clients Ending Date: 31 December 2017 Bonus Offer: Get 100% Welcome Deposit Bonus Plus 7-day

100% Special Bonus to Your First Deposit – AvaTrade

100% Special Bonus to Your First Deposit – AvaTrade(0)

100% Fx Special Bonus Offer to your first deposit Up to $300. Start trading today and in honor of our Irish roots we’ll give you a St. Patrick Day special bonus of up to 100% Link:  100% Special Bonus to Your First Deposit Available to: All new account Ending Date: 31 December 2017 Bonus offer:

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