Subscribe to RSS

GBP/USD Forecast: stuck in the falling channel ahead of UK GDP

GBPUSD

The GBP/USD pair rose to an intraday high of 1.5381 on Monday, before trimming gains to end the day at 1.5350 levels. The closing marked a failure to take out 50-DMA resistance and also a failure to sustain above 1.5355 (38.2% of 1.5107-1.5509).

GDP may surprise on the positive side

UK Q3 GDP figures are due for release today. Economists see quarter-on-quarter growth slowing to 0.6% from previous figure of 0.7%. However, the GDP could surprise on the higher side; courtesy of super strong UK retail sales number released last week. In case, the number is higher than 0.7%, Sterling could spike to 1.54 – 1.5423 (hourly 200-MA) levels. But the rally may not sustain. Last week’s super strong retail sales did lead to a 40-50 pip spike in Sterling, which was quickly erased (since the boost was due to Rugby world cup – a one off event). A similar move could be seen today in case the number is higher than 0.7%.

US durable goods report

The corporate spending in the US; like consumer spending; has not been encouraging despite the record stock market rally, ultra easy monetary policy. Even the talk of a rate hike has not seen corporate boost spending in anticipation of higher rates in near future. Hence, a negative figure is likely to kill the US dollar ahead of the FOMC rate decision tomorrow. The Fed rate hike bets continue to slide amid a fresh round of monetary easing in Europe and Asia.

A combination of a strong UK GDP figure and a weak US durable goods report could send Sterling above 1.5420, which is the falling trendline resistance on the daily chart.

Technicals – Falling channel on the hourly chart

Sterling is moving a falling channel on the hourly chart. A break above the channel resistance currently seen at 1.5360 could push the pair higher to 1.54. A daily close above 1.5420 (falling trend line resistance on the daily chart) would turn the short-term outlook bullish. On the other side, a failure to take out the falling channel resistance at 1.5360 could push the pair down to 1.5280 (channel support). A break below the same would 1.5240-1.5200 levels.

EUR/USD Analysis: Technical recovery may continue on weak US data

EURUSD

The EUR/USD pair rose to a high of 1.1068 on Monday as investors took a breather following a sharp fall to a fresh two-and-a-half month low. A sharp drop in the US new home sales added to the weak tone on the US dollar.

Focus on US durable goods data

The technical recovery may continue in case the US durable goods orders print in negative. As said earlier, the corporate spending has stayed anaemic , raising doubts on whether the US economy would be able to sustain a rate hike. The probability of a Fed rate hike is already very low and a weak durable goods number would only add to the bearish pressure on the USD ahead of tomorrow’s FOMC rate decision.

Technicals – Bulls need a close above 1.11

Euro faces multiple resistances on its way towards 1.11 handle – 1.1076 (rising trend line resistance), 1.1088 (50% of Mar-Aug rally). The next resistance is seen at 1.1116 (200-DMA). Hence, the EUR bulls would need atleast a daily close above 1.11 in order to halt the fall and lead to consolidation/technical correction in the pair. On the other hand, a failure to take out 1.1076 would push the pair back to 1.10 handle. A strong US durable goods report could easily push the pair below 1.10.

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

Receive 55% Bonus on your Deposit Money – NordFX

Receive 55% Bonus on your Deposit Money – NordFX(0)

55% Deposit Bonus Promotion to All New and Existing Customers. 55% Bonus on Deposit Fund your account with $100 – $8,000 and receive a trading bonus up to $4,400! Link:  Demo Cup contest prize fund is $42000 Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Available to:  All new and existing accounts Bonus offer: 

Up to 100% Bonus on your initial Deposit – FXtrade777

Up to 100% Bonus on your initial Deposit – FXtrade777(0)

Up to 100% Bonus promotions on your initial Deposit to all FXtrade777 New clients. Get more for your money at FXtrade777 with an unforgettable Up to 100% Welcome Bonus. Link:  Up to 100% Bonus on your initial Deposit Bonus Offer: Up to 100% Bonus promotions on your initial Deposit to all FXtrade777 New clients. FXtrade777

FIFA World Cup Football Matches Tournament – FBS

FIFA World Cup Football Matches Tournament – FBS(0)

FIFA World Cup Football Matches Tournament. Participate in the contest and win the visit to the biggest football tournament of the year in Russia. Link: FIFA World Cup Football Tournament Link:  Just Share a Greeting Card and Gifts Link:  $50 Free Will be credited to Your Account Link:  $88.8 Forex No Deposit Bonus Link:  $123 Forex

100% Withdrawable Deposit Bonus up to $5000 – NordFX

100% Withdrawable Deposit Bonus up to $5000 – NordFX(0)

100% Withdrawable Forex Deposit Bonus up to $5000. The 100% Withdrawable Deposit Bonus and the initial deposit can be withdrawn after the required number of lots is closed. Profits can be withdrawn without restrictions. Link:  Demo Cup contest prize fund is $42000 Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Available to: All

50% First Deposit Bonus Prom – Hirose Financial UK

50% First Deposit Bonus Prom – Hirose Financial UK(0)

50% First Deposit Bonus Promo Maximum Bonus Amount is $1000 for all customers. The 50% Special Bonus offer for Hirose Financial UK customers who make a deposit to Binary Options account. They can withdraw deposit and profit at anytime!! Link:  50% Deposit Bonus Promotion Available to: All new traders Bonus Offer: 50% Special Bonus offer

200% Pending Bonus for your Next Deposits – CTTrade

200% Pending Bonus for your Next Deposits – CTTrade(0)

200% Pending Bonus for the Next Deposits. Just make the re-deposit and during the day we will credit your 200% Pending Bonus. Link:  200% Pending Bonus for the Next Deposits Available to: All new account How to get Pending Bonus? Just make the re-deposit and during the day we will credit your bonus. This bonus

Free SERENITY Tokens New Year Promotion – Grand Capital

Free SERENITY Tokens New Year Promotion – Grand Capital(0)

Receive free SERENITY tokens for Forex, futures and cryptocurrency trading. The promotions is supported by SERENITY. The objective is to promote and brand the platform as a secure trading solution for trader Link:  Receive free SERENITY tokens for trading Link:  $500 Forex No Deposit Welcome Bonus Link:  Up to 444% Profit Receive for a single

$500 Chinese New Year Welcome Cash Bonus – ForexTime

$500 Chinese New Year Welcome Cash Bonus – ForexTime(0)

500 USD Chinese New Year with Cash Bonus Giveaway Promotion. Blessings for the Chinese New Year from ForexTime Get up to $500 Cash Bonus Giveaway Promotion. FXTM Link:  $500 Welcome Cash Bonus Promo Link:  Start Copy Trading your Perfect Partner Link:  $25 Per Referral Earn up to $10000 Link:  Receive $30 Tradeable Credit Free Bonus

The Ultimate IB Ride Forex Contest Promotion – Tickmill

The Ultimate IB Ride Forex Contest Promotion – Tickmill(0)

The Ultimate IB Ride Forex Contest. The Ultimate Forex IB Ride Contest Promotion is only available for clients of Tickmill Ltd. (FSA Regulated) Link:  The Ultimate IB Ride Forex Contest. Link:  $30 Free Welcome Bonus Promotion Link:  Weekly Demo Race Trading Contest Link:  Forex Monthly Live Trading Contest Available to: All new traders Bonus Offer:

10% to 40% Discounts Buy with ICO Tokens – Serenity

10% to 40% Discounts Buy with ICO Tokens – Serenity(0)

Buy Serenity ICO Tokens with Discounts of 40% to 10%! to all new account holder. The First Blockchain Escrow for Financial and Cryptocurrency Markets Serenity ICO Tokens Link:  Buy Serenity ICO Tokens with Discounts of 40% to 10%! Link:  Free SERENITY Tokens for Trading Link:  444% Profit Receive for a single trade Link:  $500 Forex

read more

Forex Featured BrokerSocial Trading

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