The GBP/USD remains in a downtrend range


The GBP/USD remains in a downtrend range

The Germany unemployment fell in January which had supported the euro in the first half of the day. According to the data, the number of unemployed fell by 9,000 in January after decline by 25,000 people in December. Analysts had expected a decline by 10 000 in January. The Germany unemployment rate was 6.5% versus 6.6% in December.

The number of the US jobless claims fell by 43,000 and amounted 265 000. Economists had forecasted that the figure would be 300,000.

Trading recommendations

If the pair increases above 1.1340-1.1320 it is recommended to long with the first target of 1.1520-1.1540. If this target is overcome, the longs will be relevant to 1.1870-1.1890. If the pair fell to 1.1200-1.1220 we recommend to short with the first target of 1.100-1.1200. When this target is overcome the shorts will be relevant to 1.0980-1.1000.


The GBP/USD remains in a downtrend range

The pound/dollar has once again failed to consolidate above 1.5220-1.5240 and the double top formation at the end of the trades on Wednesday only worsen the situation. The bulls’ disappointment by their inability to eliminate the damage caused by the technical picture, resulted in the fairly active decline and now the pair found support, but continued to trade with a depressed sentiment.

Dealers noted that the pound can take a pause in the short term, taking into consideration the 50th figure proximity, but as long as the rate remains below 1.5100-1.5120, the risks are shifted in favor of the lows testing near 1.4880-1.4900.

Trading recommendations

We recommend to short with the target of 1.4970-1.4990. The second target is the level of 1.4880-1.4900.


The GBP/USD remains in a downtrend range

The US dollar fell against the yen despite the Japan moderate economic reports publication as the markets assess the Federal Reserve System recent policy statement. The pair USD/JPY has remained almost in the middle of the mid-term side channel.

The data showed that the Japan inflation has rebounded to the minimum for one and a half years and slipped by 2.5% m/m. The base CPI, is a leading indicator, gained 2.2% y/y in January, but it is below the December estimates by 2.3%. Separate reports showed that the Japan household spending rose by 0.4% last month, lower than the expected growth by 0.3% after a 0.4% increase in November.

Trading recommendations

We advise to sell with the first target of 116.05-116.25. If the first target is overcome, the new target for the short positions will be the level of 115.05-115.25.

Ruban Sergey
Analyst of «FreshForex» company
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