The GBP/USD plans to grow | 10 July 2014

Euro

The pair held above 1.3590 on yesterday's trading, which significantly increased the recovery rate chances. However, the situation remains difficult for the bulls. The EUR/USD is slowly moving above 1.36 amid the neutral external background and the empty macroeconomic calendar. It is difficult to call this “turtle step” as the strong position consolidation. However, the fact remains - the main pair was closed in positive minimal territory, and today continues to climb.

The support levels are 1.3570- 1.3590, and the resistance levels are 1.3650 - 1.3670.

MACD is in a neutral territory.

Trading recommendations

The "Bulls" do not stop attempts to overcome the resistance. If successful, they can test the levels of 1.3650, 1.3700. It is doubtful that the euro will be able to rise above the last level. Theoretically, we should expect the sales resumption - either the current levels or the rally towards levels of 1.3650/70.

Pound

The news that the UK industrial production index was decreased by 0.7 percent on a monthly basis, have become an unpleasant surprise for the market, which have recently started to use a stronger-than-expected data from the UK. The economists had expected an increase of 0.2 percent, while the previous month growth was 0.4 percent. Nevertheless, the year on year growth was decent at 2.3%.

The support levels are 1.7090 - 1.7110, and the resistance levels are 1.7170 - 1.7190.

MACD is in a neutral territory.

Trading recommendations

While the pound is trading above 1.7110, the risks of the level of 1.7170 testing and breaking will be saved. In turn, the "bulls" failure to break the resistance will be an occasion for profit and the downward correction development.

Yen

The dollar/yen was trading with a decrease. Probably the short-term traders decided to take profits due to a long weekend in the U.S. However, even the Nikkei rise couldn’t help to increase the propensity to take risks. The most likely, the pair has a growth potential due to the U.S. Central Bank and Japan policies’ polarity. The revision of the major financial institutions’ forecasts, including Goldman, who joined the optimists club which expects the first rate increase, will strengthen the faith in the U.S. economic recovery market acceleration.

The yields on 10-year U.S. government bond fell on 0.031 points to 2.617%. The BoJ Deputy Governor Nakas said that Japan was on the way to overcome the deflation processes. According to him, the inflation level in 2015 could reach 2.0%.

The support levels: 101.20- 101.40, and the resistance levels: 101.70- 101.90.

The MACD indicator is in a negative territory.

Trading recommendations

The decrease chances to get to 101.40 are still high. This level break will lead to a drop to 101.00. The "bulls" need to overcome the resistance at 101.70/90 for the downward pressure easing.