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The GBP/USD wants to leave the current range

Euro


The GBP/USD wants to leave the current range


The a good American economy statistics supported the dollar - the initial jobless claims fell last week by 23 thousand. 264 thousand., while the predicted number was 292 thousand. The September  basic consumer price index has exceeded forecasts, showing 0.8% vs. 0.7% expected.


The latest EU borrowing costs growth with debt high levels reports were not in the euro’s favor - the government borrowing yields rose in Italy, Portugal, Spain and Greece. This has increased concerns about another Eurozone debt crisis possible beginning.


However, the euro managed to keep its position amid the dollar weakening after a series of US weak economic data publication which provoked speculations that the Fed can postpone the interest rates increase.


Trading recommendations


We advise to long with the first target – 1.2800. When the pair consolidates above the first target, we can open deals to the level of 1.2890.


Pound


The GBP/USD wants to leave the current range


The British Pound is consolidating near the last week high amid the US dollar decrease. The Bank of England reports can attract investors' attention. Some statements regarding the BoE monetary policy future steps can affect the pound position. GBP/USD was able to test 1.6125, at the moment the pair is being traded under the level of 1.6100.


Trading recommendations


We advise to long with the first target – 1.6130. When the pair consolidates above the first target, we can open deals to the level of 1.6200.


Yen


The GBP/USD wants to leave the current range


The Japanese yen doesn’t keep its positive sentiment against the US dollar despite the growing safe assets demand after the US GDP revision forecasts and expectations about the Fed interest rates’ increase. The pair dollar/yen is near the prices closure, but it can continue its decrease as the Nikkei index has fallen again and has lost 1.4%.


Trading recommendations


We advise to short with the first target – 106.30. When the pair consolidates below the first target, we can open deals to the level of 105.80.

Ruban Sergey
Analyst of «FreshForex» company
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