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  • GBP/USD Forecast – British Pound Looking To Gain Traction Vs Dollar

    GBP/USD Forecast – British Pound Looking To Gain Traction Vs Dollar

    • – The British Pound after a nasty decline found support near 1.2140 against the US Dollar.
    • – The GBP/USD pair is currently recovering, and facing a major resistance trend line at 1.2180 on the hourly chart.
    • – The UK’s Trade Balance figure for Jan 2017 released by National Statistics posted a trade deficit of £-2.447B, less than the forecast of £-2.50B.

     

    UK Trade Balance

    Today in the UK, the Trade Balance figure for Jan 2017 was released by National Statistics. The market was expecting the balance between exports and imports of total goods and services to be £-2.50B in Jan 2017.

     

    The outcome was better than the forecast, as the UK’s Trade Balance posted a trade deficit of £-2.447B. The good trade balance was also above the forecast with deficit of £-10.833B in Jan 2017. The report mentioned that “Between the 3 months to October 2016 and the 3 months to January 2017, the total trade deficit (goods and services) narrowed by £4.7 billion to £6.4 billion”. In another release, the UK Industrial Production released by the National Statistics posted a rise of 3.2% in Jan 2017, compared with Jan 2016. It was a point lower than the forecast of 3.3%.

     

    It looks like the British Pound is attempting a recovery, but might struggle to break the trend line resistance near 1.2180.

     

    GBP/USD Technical Analysis

    The British Pound struggled a lot lately and moved below 1.2200 against the US Dollar. The GBP/USD pair fell towards 1.2140 where it found support and started a consolidation. The pair traded in a range for some before moving higher.

     

    GBP/USD Technical Analysis Pound US Dollar

     

    It already made an attempt to settle above the 1.2200 handle, but failed. There was also a failure near the 38.2% Fib retracement level of the last decline from the 1.2300 high to 1.2133 low. At the moment, the pair is struggling to clear a major resistance trend line at 1.2180 on the hourly chart.

     

    If there is a break above 1.2180, the pair might test the second trend line resistance at 1.2195, which also coincides with the 100 hourly simple moving average. On the other hand, if the pair fails once again, there can be a retest of 1.2140.

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  • GBPJPY – Can This Rebound Sustain In British Pound?

    GBPJPY – Can This Rebound Sustain In British Pound?

    • British Pound continued to weaken not only against the US Dollar, but also against the Japanese Yen.
    • There was a contracting triangle pattern on the hourly chart of GBP/JPY, which was broken to ignite a downside move.
    • The UK Trade Balance figure reported by National Statistics posted a better than expected trade deficit of £-2.57B in May 2016.

     

    UK Trade Balance

    Today the UK saw Trade Balance (non-EU) data by National Statistics. The market was expecting the balance between exports and imports of total goods and services to post a deficit of £-2.900B in May 2016.

     

    However, the end result was better, as the trade deficit (non-EU) was lower and came in at £-2.57B. When we look at the total trade balance, then the deficit was £-2.263B.

     

    Commenting on the figures, the report highlighted that “the UK’s deficit on trade in goods and services was estimated to have been £2.3 billion in May 2016, a widening of £0.3 billion from April 2016. Exports decreased by £2.0 billion and imports decreased by £1.7 billion”.

     

    The British Pound managed to recover a few pips after the release, but it faces a couple of major resistance on the upside against the Japanese yen.

     

    GBP/JPY Price Analysis

    The GBP/JPY pair had a bad week, as it moved down and traded towards the 128.60 level where it found bids. The pair then recovered and formed a contracting triangle pattern on the hourly chart.

     

    GBP/JPY Price Analysis

    Later, the pair found resistance near the 38.2% Fib retracement level of the last drop from the 136.79 high to 128.62 low, and started moving down.

     

    During the downside move, it broke the highlighted contracting triangle pattern to trade towards 130.00. It is again recovering, but may face sellers near the same resistance area, as highlighted in the chart.

     

    The 100 hourly simple moving average is also sitting near 132.00-20 levels to act as a barrier for more gains. Overall, as long as the GBP/JPY pair is below the mentioned resistance levels, it may face sellers on the upside.

     

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