Subscribe to RSS

GBP/USD Forecast: Muted reaction to Fed, Eyes UK GDP

GBPUSD

The GBP/USD pair fell on Wednesday ahead of the Fed and remained weak despite dovish hints from the Fed. Sterling’s weakness may be due to speculation that the Fed may end up holding rates unchanged for the rest of the year and hence the BOE too would let go its plans to raise rates in 2016. Anyways there are few in the markets now, who believe a BOE rate hike could happen in 2016. Hence, the dud reaction in GBP/USD following a slightly dovish Fed statement is surprising. As of now, the pair is trading around 1.4245 levels.

Eyes UK GDP

The preliminary Q4 GDP is seen slowing to 1.9% y/y from 2.1%. Quarter-on-quarter number is seen rising to 0.5% from 0.4%. Given the weak spending and service sector activity data in the last three months the actual GDP figure could drop more than expected. However, Sterling may not suffer sharp losses on a weaker-than-expected GDP since the slowdown is already well know and priced-in.

Technicals – strong support at 1.4210

  • Sterling’s drop from 1.4355 to the falling channel support caught many by surprise, but still the currency has maintained the rising bottom formation (rising trend line) seen on the hourly chart.
  • An immediate support is seen at 1.4237 (rising trend line), which if breached could see the pair re-test 1.4210-1.42 (falling channel support).
  • Only an hourly close below 1.42 would mean the corrective rally is done and the pair is heading back to 1.4079.
  • However, the odds of a bullish move back to 1.43-1.4390 are high, given the inverted head and shoulder and the rising bottom formation on the hourly.

EUR/USD Analysis: Weak EZ CPI could hurt EUR

EURUSD

The EUR/USD pair remains stuck in the range of 1.0750-1.0950 range despite dovish hints from the FOMC statement released yesterday. The risk-off mood in the equities continues to protect the downside, while the dovish ECB ensures the buying interest is not strong enough to chew through offers around 1.0950-1.10. The pair is trading moderately weak around 1.0878 levels today.

The Eurozone preliminary inflation figures for January are due for release later today. Harmonized Index of Consumer Prices (HICP) is expected to come-in at -1.0%. Inflation had stalled in the previous month. The HICP is more sensitive to slide in oil; hence a negative print will not be a surprise. Still, that would enough to underscore the need to do more by the ECB and could push the EUR lower.

Technicals – Awaits breakout

  • Euro awaits breakout from the 200-pip range of 1.0750-1.0950.
  • Failure to sustain above 1.0890 (38.2% of 1.1495-1.0517) could result in a drop to 1.0832 (falling channel support).
  • On the other hand, a break above the daily high of 1.0907 could see the pair re-test 1.0950 levels.

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

Free $30 Earn Trade-able Trading Credit Bonus – Forex Time

Free $30 Earn Trade-able Trading Credit Bonus – Forex Time(0)

Switch to ForexTime and Free $30 Earn Trade-able Trading Credit Bonus. Join the hundreds of thousands of traders around the world who have already chosen ForexTime as a broker and Free Earn $30 Trade-able Trading Credit Bonus as a thank you for switching. Link:  Receive $30 Tradeable Credit Bonus Link:  Loyalty Cashback Promotions Link:  FX

$100 Risk Free Money on your Live Account – FidelisCM

$100 Risk Free Money on your Live Account – FidelisCM(0)

Get $100 Free Risk Forex Money on your Live Account There is no better way to trust more. Sign up for $100  No Deposit Bonus from FidelisCM Live Account and start forex trading now. Link: $100 Free No Deposit Forex Bonus Link: 200% Margin Bonus on all Deposit Available to: New and Existing clients Ending

$14000 New Accounts Bonus on Initial Deposits – AvaTrade

$14000 New Accounts Bonus on Initial Deposits – AvaTrade(0)

Up to $14000 New Accounts Bonus on your Initial Deposits to all new trading account. Open a new live trading account and verify it Make a deposit of no less than $100 and request the New Accounts Bonus. Link:  100% Bonus to Your First Deposit Link:  30% Sign-up Bonus on your Deposit Link:  Up to

Up to 200% Withdrawable Cashback Bonus – Forex Time

Up to 200% Withdrawable Cashback Bonus – Forex Time(0)

Always aims for profitable promotions for FXTM Customer, this time they have come up with a 200% Cashback Rebate Bonus promo which enables traders to earn up to 10,000 USD withdraw able Cashback bonus. Link:  Receive $30 Tradeable Credit Bonus Link:  FX Circuits Live Trading Contest Link:  Demo Forex Trading Contest Link:  Loyalty Cashback Promotions

$2500 Forex No Deposit Free Startup Bonus – InstaForex

$2500 Forex No Deposit Free Startup Bonus – InstaForex(0)

$2500 Free No Deposit Forex Bonus to Start Risk Forex Trading on InstaForex.com‎. With $2500 Free Forex Bonus you will be able to estimate our unsurpassed quality of order execution in live trading conditions with no risk and personal investments. Link:  Up to $5000 No Deposit Free Bonus Link:  $500 Forex No Deposit Free Bonus

100% Special Bonus Offer on a Deposit – World Forex

100% Special Bonus Offer on a Deposit – World Forex(0)

Get a 100% Special Bonus Offer on a Deposit plus for replenishment account And a free VPS server for every account replenishment in the amount of 100 USD. Link:  $10 No Deposit Forex Special Bonus Link:  Deposit $5 Receive $20 Special Bonus Link:  100% Forex Special Deposit Bonus Available to: All new trading account Ending

50 USD Forex No Deposit Bitcoin Bonus offer – UFX

50 USD Forex No Deposit Bitcoin Bonus offer – UFX(0)

$50 Forex No Deposit Bonus on their real account. This initial $50 Forex No Deposit Bonus offer is intended to allow new users of the platform the opportunity to test the real trading account. Link:  $50 No Deposit Bonus Promotion Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack Promotion Available to:

Deposit $5 Receive $20 Forex Special Bonus – WForex

Deposit $5 Receive $20 Forex Special Bonus – WForex(0)

$10 Forex No Deposit Free Bonus or Deposit $5 Receive $20 Special Bonus Forex to all World Forex New Clients only. Trade with World Forex Broker Get 20$ or 10$ on your choice Link:  $10 Forex No Deposit Free Bonus Link:  Deposit $5 Receive $20 Special Bonus Available to: All new trading account Ending Date:

25 USD Receive Forex Cash Bonus for Free – Xtrade

25 USD Receive Forex Cash Bonus for Free – Xtrade(0)

$25 Receive Forex Cash Bonus for Free No deposit required to all Xtrade New Clients only and 60% Forex Deposit Bonus on your first time deposit to all new live trading account Link:  Up to $5000 No Deposit Free Bonus Link:  $500 Forex No Deposit Free Bonus Link:  $1000 Forex No Deposit Free Bonus Link: 

50% Deposit Bonus for Every Deposit – Fort Financial

50% Deposit Bonus for Every Deposit – Fort Financial(0)

Up to 50% Deposit Bonus for Every Deposit. Open and fund an account at FortFS.com and receive an exclusive 50% bonus on top of your initial investment up to $1000. Link: Up to 50% Bonus of Every Deposit Link: $5 Forex No Deposit Welcome Bonus Link: 15% Support Margin Bonus Available to: New and Existing

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