Log in

The GBP/USD keeps falling towards 1.5350

03 March 2015, EUR/USD


The GBP/USD keeps falling towards 1.5350

The euro closed the trade against the dollar at the opening prices. Such important indicator as the consumer price index (CPI) is expected with a slight increase, the preliminary estimates are projected with a growth on the year basis to -0.4% y/y vs. -0.6% y/y. The important event this week can be the next ECB monetary policy meeting. All the pair euro/dollar attempts to develop the upward correction were unsuccessful. Subjected to the next sales wave, the pair broke through the support near 1.1250-1.1270 and fell to the level of 1.1165. Thus, the pair came out of the range where it had trading since January.

The support levels are 1.1100-1.1120, and the resistance levels are 1.1220-1.1240.

MACD is in a negative territory.

Trading recommendations

The lower bound breakthrough involves the minimum testing at the level of 1.1100-1.1120 and its breakthrough will lead to decrease towards 1.0980-1.1000. The loss of this level will open the way to parity. It is likely that either on the minimum or near 1.0980-1.1000, sellers will fix the profit, still there are no reasons for the euro purchases.


The GBP/USD keeps falling towards 1.5350

The British pound sales continued in the previous session. The pound spent the day in the side corridor against the dollar but closed the day with a decrease. The economic leading sectors activity indices (PMI) are projected to move higher that can support the British pound. The central event will be likely the BoE monetary policy prospects announcement.

Having found the support near 1.5330-1.5350, the pair was able to resume its recovery and, breaking through the number of levels, it rose up to the resistance around 1.5560-1.5580. The pound failed to overcome this level. Being again under pressure, it broke through the supports near 1.5470-1.5490 and 1.5395-1.5415. The pair decreased to the support near 1.5330-1.5350.

The support levels: 1.5330-1.5350 and the resistance levels: 1.5395-1.5415.

The MACD indicator is in a negative territory.

Trading recommendations

Its inability to consolidate above the 55th figures should be seen as an alarm signal for the bulls within the pair, but as long as it is trading above 1.5330-1.5350 chances for its growth resumption will be still preserved. The loss of this support will lead to a decrease towards 1.5280-1.5300.


The GBP/USD keeps falling towards 1.5350

The attitude towards the dollar and the yen were largely under the US economic data influence which were perceived by the market as positive for the dollar. The Japan capital expenditure annual report came out worse than expected which was 2.8% against 5.5%, it was previously expected 4.1%. On the contrary, the manufacturing activity index came out better than expected: 51.6 against the previous 51.5. Last week the pair USD/JPY tried to increase interest for sale. Thus, after testing the resistance around 119.84, the pair fell to the support near 118.62. In its turn, the dollar was in demand on dips; therefore, it is now approaching the level of 120.20-120.40.

The support levels: 119.05-119.25, and the resistance levels: 120.20-120.40.

The MACD indicator is in a positive territory.

Trading recommendations

The breakthrough and the ability to consolidate above the 20th figure will jeopardize the maximum at the level of 121.30-121.50. The loss of support near 117.95-118.15 will signal about the downward correction resumption.

Ruban Sergey
Analyst of «FreshForex» company
See also:
Agree with the review?
Traders' opinion:

Do you have any suggestions to make our website better? Have you noticed an error on the site? Tell us

Tell us

Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with rendering Personal area. How to enable cookie support.