The GBP/USD keeps strenghtening | 20 April 2015

Euro

The euro growth is limited after the European Central Bank stated that it had expected to implement the quantitative easing program fully the size of which is trillion euros. The euro area consumer prices harmonized index amounted to 0.1% on the annual basis in March, compared with 0.3% in February and the preliminary assessment of -0.1%. While the US was publishing the consumer price inflation and consumer sentiment index data.

The support levels are 1.0750-1.0770, and the resistance levels are 1.0900-1.0920.

MACD is in a positive territory.

Trading recommendations

We recommend to sell with the first target of 1.0610-1.0630. If this level is overcome, the new target will be 1.0480-1.0500 to short.

Pound

Great Britain published the wages and employment data this week. The UK unemployment rate fell from 5.7% in January to 5.6% in February which corresponded to the forecasts. The level of average earnings in the UK, taking into account premiums, increased by 1.7% in February compared with a growth by 1.8% the previous month as it was forecasted + 1.8%. The pound received additional support. Another reason to buy can be the US economic data, if, of course, it once again shows disappointing results.

The support levels: 1.4880-1.4900 and the resistance levels: 1.5000-1.5020.

The MACD indicator is in a positive territory.

Trading recommendations

Be advised to short to the target of 1.4880-1.4900. The second target is the level of 1.4750-1.4770.

Yen

The pair dollar/yen is under pressure from the negative attitude towards the US dollar after the latest data that had shown weaker than expected growth in the US number of housing foundations in March and the larger than expected US building permits reduction in March and greater than expected the US initial jobless claims March 5-11 number. The US Treasury bond yields decline has also put pressure on the pair (the 2-year bond yields was 0.487% versus 0.504% on the Wednesday evening) and the Japanese exporters’ sales.

The support levels: 117.95-118.15, and the resistance levels: 119.25-119.45.

The MACD indicator is in a negative territory.

Trading recommendations

Be advised to long to the first target of 119.25-119.45. Shall the price overcome the first level the second one is the level of 120.20-120.40.