LMFX PAMM


Forex broker List

  • GBP/JPY Forecast –Pound Faces Monster Resistance Near 140.00 Vs Yen

    GBP/JPY Forecast –Pound Faces Monster Resistance Near 140.00 Vs Yen

    • – The British Pound gained bids recently and moved above 139.00 versus the Japanese yen.
    • – The upside was prevented by a monster bearish trend line with resistance at 140.00-140.10 on the 4-hours chart.
    • – In the UK today, the Manufacturing Purchasing Managers Index (PMI) for March 2017 released by both the Chartered Institute of Purchasing & Supply and the Markit Economics posted a decline from 54.6 to 54.2.

     

    UK Manufacturing PMI

    Today in the UK, the Manufacturing Purchasing Managers Index (PMI) for March 2017 was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. The market was positioned for a rise from the last reading of 54.6 to 55.1.

     

    However, the outcome was on the lower side, as the UK Manufacturing PMI posted a decline from 54.6 to 54.2. It’s still a good reading, but we cannot ignore the fact that it slipped to a four-month low of 54.2 in March 2017. Commenting on the report, the Senior Economist at IHS Markit, Rob Dobson, stated “The survey data suggest that the goods-producing sector made a solid contribution to GDP during the opening quarter of 2017. However, it’s clear that the expansion will be less than the buoyant 1.3% rise

    seen in the fourth quarter of last year”.

     

    Overall, the result was mixed, and may not help GBP/JPY in gaining pace, which is why the pair might continue to face resistance near 140.00.

     

    GBP/JPY Technical Analysis

    The British Pound had a good run against the Japanese yen, as it moved above the 138.80 and 139.00 resistance levels. The GBP/JPY pair traded towards 140.00 where it found a monster bearish trend line on the 4-hours chart.

     

    GBP/JPY Technical Analysis British Pound Yen

     

    The 140.00 level acted as a strong barrier, and the same trend line stopped upside on many occasions. So, it won’t be easy for the pair to break and move towards 141.00. There is a chance of a dip in the near term. An initial support is around the 38.2% Fib retracement level of the last wave from the 137.51 low to 140.08 high at 139.10.

     

    Above 139.10 lies the 100 simple moving average at 139.30. I think we may see some ranging moves in GBP/JPY with resistance at 140.00, and support at 139.00 until there is a real break.

    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

  • GBP/USD Forecast – British Pound Faces Uphill Task Vs Dollar

    GBP/USD Forecast – British Pound Faces Uphill Task Vs Dollar

    • – The British Pound recently broke a major support area at 1.2400 against the US Dollar.
    • – There is a connecting bearish trend line with resistance at 1.2430 formed on the 4-hours chart of GBP/USD.
    • – The UK’s Manufacturing Purchasing Managers Index (PMI) for Feb 2017 released by both the Chartered Institute of Purchasing & Supply and the Markit Economics posted a decline from 55.9 to 54.6.

     

    UK Manufacturing PMI

    Today in the UK, the Manufacturing Purchasing Managers Index (PMI) for Feb 2017 released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. The forecast was aligned for a decline from the last reading of 55.9 to 55.6 in Feb 2017.

     

    However, the result disappointing, as the UK Manufacturing PMI registered a decline from 55.9 to 54.6 in Feb 2017. The report highlighted that “Output and new orders rise solidly, albeit at slower rates. Price inflationary pressures remain elevated. The PMI was firmly above its long-run average of 51.6 and nonetheless signalled expansion for the seventh successive month”. Earlier today, the British Retail Consortium (BRC) Shop Price Index released for Feb 2017 (YoY) posted a decline of 1%.

     

    Overall, the outcome failed to impress the British Pound buyers, which might push the GBP/USD pair back towards 1.2350.

     

    GBP/USD Technical Analysis

    The British Pound struggled a lot lately and moved below the 1.2400 support area against the US Dollar. During the downside move, the GBP/USD pair also broke the 100 simple moving average, and a connecting bullish trend line with support at 1.2450 on the 4-hours chart.

     

    GBP/USD Technical Analysis Pound Dollar

     

    At the moment, the pair is attempting a recovery from the 1.2350 low, but likely to face sellers near the 23.6% Fib retracement level of the last decline from the 1.2569 high to 1.2349 low.

     

    However, the most important resistance is near a connecting bearish trend line at 1.2430 on the same chart. It also coincides with the 38.2% Fib retracement level of the last decline from the 1.2569 high to 1.2349 low. So, overall, the GBP/USD pair remains under trouble, and any rallies towards 1.2400 might face a lot of hurdles in the near term.

    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