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The GBP/USD broke the main resistance levels


The GBP/USD broke the main resistance levels

The European currency declined at the beginning of the last session but it rose at the end of the week. According to the preliminary results, the Eurozone manufacturing sector purchasing managers index PMI fell to 51.9 in April against 52.2 in March, but it was forecasted 52.6, the service sector indicator rose up to 53.7 from 54.2, but it was expected 54.4. A similar pattern was repeated with the Germany and France indices, but the French indicators signal that the decline rate has strengthened.

The traders’ nervousness towards the US dollar and the euro is maintained. They fixed some profits on the pair decline to the support near 1.0630-1.6050 as a result we had the rebound to the resistance around 1.0900-1.920. Thus, the level of 1.0770-1.0790 was broken through that may suggest some improvement in the pair prospects.

Trading recommendations

Shall the pair break the support we may expect its decrease towards the level of 1.0470-1.0490.


The GBP/USD broke the main resistance levels

The British pound, like the euro, was also declining against the dollar. However, the pound sales were stopped by the US information output that presented the weak economic statistics. The UK retail sales fell by 0.5% m/m and 4.2% y/y in March against 0.6% m/m and 5.4% y/y in February when everyone expected growth continuation - by 0.4% m/m and 5.4% y/y. The public sector borrowings increased by 7.4 billion pounds in March while it was expected +7.2 billion pounds.

The pair pound/dollar decreased to the support near 1.4980-1.5000 that might attract buying interest against which the pair returned above the psychological level of 1.5100-1.5120 and broke through the resistance around 1.5160-1.5180.

Trading recommendations

The situation allows the bulls to be optimistic about the next pair prospects testing and count on the 52nd figure testing. The loss of the support near 1.4980-1.5000 may return some optimism to bears.


The GBP/USD broke the main resistance levels

The pair dollar/yen is again declining that is the result of the optimism decrease in the Japan stock market where the Nikkei finished the session with a decrease by 0.8%. Business News, published in Japan, showed the inflation slowdown - the corporations’ price index fell slightly - to 3.2% y/y from 3.3% y/y in March.

The pair managed to consolidate above the support near the 117th figure, although its growth efforts have been limited by the resistance near the 118th figure. This level was broken through that led to the growth towards 119.25-119.45, after testing the level of 120.00-120.20 it rebounded below 119.05-119.25.

Trading recommendations

We expect the growth continuation to 120.00-120.20, but the support loss near 117.95-118.15 will be a wake-up call for bulls.

Ruban Sergey
Analyst of «FreshForex» company
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