The GBP/USD changed its mind to grow | 15 July 2014

Euro

The euro/dollar restoration was short-lived and wasn’t particularly ambitious. After touching the resistance around of 1.3650 the pair returned under pressure again. After the breaking support level of 1.3618, the pair tested the level of 1.3589, which could provide support at this stage.

The support levels are 1.3570- 1.3590, and the resistance levels are 1.3650 - 1.3670.

MACD is in a neutral territory.

Trading recommendations

The attempts to grow were limited by the resistance at 1.3618. The euro may test support at 1.3576 in the short term and in the case of its breaking it can test 1.3545. Should it pass the level that will significantly worsen the pair’s outlook.

Pound

The British currency is traded in the range of 1.7084 - 1.7178, which means a pause to get strength before the hike up.

Despite the fact that the pair has formed the steady upward trend - the market participants don’t plan to rush with the long positions opening in order to break the 72nd figure until they receive the UK positive reports.

The current high pound level could have a negative impact on the economic growth pace. We have already received the first alarm bells after the industrial production release and the net exports volume reducing and all eyes now will be on the inflation data.

The support levels are 1.7050 - 1.7070, and the resistance levels are 1.7110 - 1.7130.

MACD is in a neutral territory.

Trading recommendations

The pound inability to test and overcome the current high triggers the "bulls" profit taking whereby the pair will begin the downward correction. The minimum correction target will be the support around 1.7040-1.7000. Should the pair loses the last level it might fall to 1.6950-1.6920, which will weaken the upward momentum.

Yen

In the absence of important macroeconomic statistics from Japan and the U.S., the traders continued to closely monitor the trading dynamics on the stock markets. After the strong growth in the first half of this year we can expect the corrective movement that will put pressure on the pair. However, the exporters will buy the U.S. currency strong decrease and therefore it is more likely to open the long positions on the support levels of 101.06 and 100.82.

The support levels: 101.20- 101.40, and the resistance levels: 101.70- 101.90.

The MACD indicator is in a negative territory.

Trading recommendations

The "bear" inability to consolidate below 101.22 could lead to the consolidation formation at the current levels that might be followed by the upward trend resumption, but it is too early to talk about it.