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Analysts expect GBP/USD deep fall

24 February 2014, EUR/USD


Analysts expect GBP/USD deep fall

Eventually all important reports from the U.S. in January came negative that puts pressure on the dollar. On the other hand, the possible development of the deflation process in the euro area and the problems of the European banking sector are the resistance to the EUR/USD growth.

We can expect a side trend during the day.

We single out today the following levels. The support levels: 1.3698-1.3625 and the resistance levels: 1.3740-1.3810.

Trading recommendations

The bulls’ hope to test the 38th figure are gone, as the pair was sold. The decline was the result of the 1.3719 support breakdown, this level acts as resistance now, suppressing the onset of the bulls.

We do not believe in a trend reversal now. The fall below 1.3686 would mean testing the level 1.3618, the loss of which significantly degrades the pair’s outlook.


Analysts expect GBP/USD deep fall

Last week Bank of Japan minutes were published. As usually traders did not pay much attention to this event; paying more attention to the press conference that followed the meeting.

The levels for today are: the support levels: 102.16 - 101.78 and the resistance levels: 102.60 - 103.37.

Trading recommendations

Friday, the pair again tested the support at 101.66, and again unsuccessfully. There are still located bulls bids on the dollar that return the pair to the resistance in the area 102.60-102.74. While the pair does not take it the risk of the support breakdown remains.


Analysts expect GBP/USD deep fall

The pound remains under the pressure amid mixed statistics from the euro zone as a whole.

The pair is trading below 1.6700, while the support is at session lows at 1.6630. The immediate resistance is at 1.6730.

Trading recommendations

The small 1.6670 retests are followed by the consolidation. The volumes near 1.6640 indicate sellers’ power weakening, however, due to the rising trend line break, the situation remains ambiguous.

Ruban Sergey
Analyst of «FreshForex» company
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