LMFX PAMM


Forex broker List

  • GBP/USD – British Pound Suffers Major Setback Vs US Dollar

    GBP/USD – British Pound Suffers Major Setback Vs US Dollar

    • The British Pound tumbled and traded below the 1.20 handle versus the US dollar this week.
    • All trade talks related to Brexit caused a downside move in the GBP/USD pair.
    • In the UK, the Manufacturing Production released by the National Statistics posted a rise of 0.2% in August 2016.

     

    Brexit and UK Manufacturing Production

    The Brexit trade talks were the main catalyst in the recent downside move in the British Pound. However, the GBP/USD nosedived today by more than 5%, and many say that it was due to French president Hollande’s ‘hard-Brexit’ comments.

     

    Today during the London session, the UK Manufacturing Production, which evaluates the manufacturing output was published by the National Statistics. The market was excepting an increase of 0.4% in August 2016, compared with the previous month.

     

    The outcome was on the lower side, as there was a rise of 0.2% only. In terms of the yearly change, there was an increase of 0.5%.

     

    The report highlighted that “In August 2016, total production output was estimated to have increased by 0.7% compared with August 2015. There were increases in 2 of the 4 main sectors, with the largest contribution coming from water supply, sewerage and waste management output, which increased by 7.0%”. Overall, there was nothing for the British Pound, so it may continue to face offers in the near term.

     

    GBP/USD Technical Analysis

    The British Pound suffered heavy losses this week versus the US Dollar, as the GBP/USD broke many important and many year lows. There was even a move below the 1.20 handle today during the Asian session.

     

    GBP/USD Technical Analysis

     

    The daily chart of the GBP/USD pair is showing a bearish picture with a move below the 1.2800 support area. There was a break below a support trend line on the chart, which once broken, cleared the way for a drop below 1.2000.

     

    However, the pair is now back above the 1.2300 level, but remains as a risk of more declines. The recent correction failed near the 23.6% Fib retracement level of the last major drop from the 1.50 high to 1.2800 low. So, we can say that the pair in the current wave may once again face sellers and continue its decline.

     

    Tags: , , , ,

    Like what you've read?

    Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

    Previous Entry   Next Entry

  • EURUSD – Euro Heading Towards A Major Break?

    EURUSD – Euro Heading Towards A Major Break?

    • Euro after a brutal fall against the US Dollar after the Brexit outcome found support near 1.0900.
    • There is currently a contracting triangle pattern forming on the hourly chart of EUR/USD, which may ignite the next break in the near term.
    • The Euro Zone Manufacturing Purchasing Managers Index (PMI) released by the Markit Economics posted a rise from the last reading of 52.6 to 52.8 in June 2016.

    Euro Zone Manufacturing PMI

    Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI), which captures business conditions in the manufacturing sector was reported by the Markit Economics.

     

    The market was not expecting any change in the PMI from 52.6 in June 2016. However, the result was a bit better, as the Manufacturing Purchasing Managers Index (PMI) increased from 52.6 to 52.8 in June 2016.

     

    The report released by the Markit Economics, stated “recovery in the eurozone manufacturing sector gathered momentum in June. Growth of both production and new orders accelerated to the fastest in the year so far, taking the respective rates of expansion during the second quarter as a whole a tick above those achieved in quarter one”.

     

    In short, there is a reason for the Euro to gain pace in the short term versus the US Dollar.

     

    EUR/USD Price Analysis

    The EUR/USD fell sharply after the UK exit news from the European Union, and traded as low as 1.0911 against the US dollar.

    EUR/USD Price Analysis

    However, it started to recover and slowly retraced higher. The pair traded above the 23.6% Fib retracement level of the last drop from the 1.1426 high to 1.0911 low, and currently finding sellers around the 38.2% Fib level of the same wave.

     

    The most important point is that there is a contracting triangle pattern forming on the hourly chart of EUR/USD, which may play a major role in the short term.

     

    The pair is also above the 100 hourly simple moving average, which is a bullish sign and might push it higher moving ahead.

     

    Tags: , , , ,

    Like what you've read?

    Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

    Previous Entry   Next Entry

  • GBPUSD – Brexit Final, What’s Next For Pound?

    GBPUSD – Brexit Final, What’s Next For Pound?

    • British Pound dropped like a stone against the US Dollar today due to the outcome of the UK referendum in which the UK voted to leave the EU.
    • Is it the beginning of the end for the EU Zone? Many say other members will follow the same path soon.
    • The GBP/USD collapsed and traded down by more the 1600 pips earlier during the Asian and European session.

    Brexit

    Today, the UK voted to leave the European Union, and Brexit is now a done deal. There were a lot of moves noted in the European currencies, and mostly suffered heavy losses.

     

    The Euro and the British Pound collapsed, and were seen dropping like a stone. Later, during the NY session today, the Durable Goods Orders figure was published by the US Census Bureau. The forecast was slated for the orders received by manufacturers for durable goods to decrease by 0.5%.

     

    However, the result was horrible, as there was a decline of 2.2% in May 2016, compared with the last increase of 3.3%. The report stated that the “New orders for manufactured durable goods in May decreased $5.3 billion or 2.2 percent to $230.7 billion, the U.S. Census Bureau announced today. This decrease, down following two consecutive monthly increases, followed a 3.3 percent April increase”.

     

    The US dollar was not affected much, as there was already a lot of impact due to Brexit.

    GBP/USD Price Analysis

    The GBP/USD pair was down by around 2000 pips during the past 24 hours, as it moved down from the 1.5000 high to 1.3220 low.

    During the downside move, the pair broke a lot of important support areas, including 1.4000 and 1.3800, and created a new low not seen in the past 25 years.

     

    GBP/USD Price Analysis

    The pair is currently recovering and trading near the 1.3700 levels. However, the current wave can be considered as a part of a correction, and once it completes the pair might head lower.

     

    Overall, the market sentiment is strongly bearish for GBP/USD, which can take it further down.

    Tags: , , ,

    Like what you've read?

    Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

    Previous Entry   Next Entry

Join Our Newsletter:

US & Canadian Traders Welcome Make the trade