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The GBP/USD lost some more ground

13 April 2015, EUR/USD


The GBP/USD lost some more ground

The euro is losing ground against the dollar. The pair is suffering losses, continuing the downward correction from the recent highs around 1.1000-1.1020. The dollar strengthened its growth after the FOMC protocol. The France February industrial production publication came out better than expected 0.0% while the indicator was expected with a decrease by 0.1% m/m after + 0.4% m/m in January. The pair resumed its decline, fell down and tested the support around 1.0750-1.0770. Moreover, this level was immediately broken through which led to the pair decrease to 1.0610-1.0630. There was this level breaking.

The support levels are 1.0480-1.0500, and the resistance levels are 1.0630-1.0650.

MACD is in a negative territory.

Trading recommendations

The next bears’ target might be the support near 1.0480-1.0500 and this level breakthrough will open the way to the low of 1.0340-1.0360. The euro needs to return and consolidate above 1.0770-1.0790 to weaken the bearish pressure.


The GBP/USD lost some more ground

The British pound fell against the dollar at the previous trading week. In addition to the “dollar” general sentiment the UK own economic news put pressure on the pound. At the end of the Friday trading the pair has slightly corrected. Manufacturing production coincided with the forecast and rose to 0.4%, but the construction sector production heavily decreased by 0.9% after a decrease by 2.5% in January. The risks of the pair pound/dollar further decline are high, so the pair’s decrease should not catch us in surprise at the last session. On the rebound to 1.4880-1.4900 the pair was sold off which led to its fall to 1.4600-1.4620 as the result there was broken through the support around 1.4680-1.4700, marked by us as the probable immediate bears’ target.

The support levels: 1.4600-1.4620 and the resistance levels: 1.4700-1.4720.

The MACD indicator is in a negative territory.

Trading recommendations

We expect the resistance level of 1.4700-1.4720 testing in the short term, this level breakthrough will lead to a increase towards 1.4770-1.4790. The pound needs to return above 1.4900-1.4920 to ease the downwards pressure.


The GBP/USD lost some more ground

The Japanese yen continued its decrease against the dollar last week. The yen was supported not only by intensified hopes that the US would soon increase interest, but also by the optimistic developments in the US and Japan stock markets. At the end of the Friday the pair rebounded from the highs. There were published the crediting data for March. The index noted the loans growth rate granted by year: 2.6% y/y vs. 2.5% y/y which is a positive signal as it may indicate the positive impact made by the Bank of Japan monetary policy easing measures.

Having rebounded from the support around 119.05-119.25, the US dollar with the Japanese yen again rose above 120.20-120.40. This time it was broken through and the dollar rose to the level of 120.73. Then it fell back to the level of 120.00-120.20.

The support levels: 120.00-120.20, and the resistance levels: 121.30-121.50.

The MACD indicator is in a positive territory.

Trading recommendations

Bulls are trying to consolidate above the broken through levels that will allow them to test the 121st figure in the short term. Another loss of 120th figure can turn into the deeper correction.

Ruban Sergey
Analyst of «FreshForex» company
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