Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - RSS Feed

Forex Market Analysis: GBP and AUD Approaches Resistance Level. UK Rate and Inflation Report in Focu

Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - WhatsApp

Friday, May 5, 2017/ 12:30 PM /Meristem

Source: MERI FX

Fundamental indication
GBP: The Gross Domestic Product (GDP) released on Friday, April 28, 2017 stood at 2.1%, a 0.1% decrease from the forecasted 2.2%. Market participants await the Bank of England Rate Decision and Inflation Report on May 11. These releases are important as they may influence the price movement of the pair. If these imminent economic report appear adverse, investor sentiment may become negative, triggering the currency to decline against most of its major counterparts due to the sequence of major negative economic news and vice versa.

The Australian Dollar has displayed mixed sentiment following the Consumer Prices Index (2.1%) release on Wednesday, April 26, 2017 indicating a decrease of 0.1% from the forecasted 2.2% and the Reserve Bank of Australia Rate Decision on May 02, 2017 to maintain the rate at 1.50%.

Technical Analysis
The pair has been in a downtrend since 25th of August, 2015. It has however formed a floor and has been making higher highs and higher lows which indicates a change of trend. It also broke the 1.7122 resistance level on 26th of March, 2017.

Scenario 1
If the pair reaches the 1.7732 resistance and displays a bearish candlestick confirmation, we advise a “SELL”

Stop loss at the high of the bearish candlestick

Price target at 1.7122

Scenario 2
We advise a “BUY” only when the pair reaches 1.7732 and pulls back to the 1.7122 price. A bullish candlestick confirmation with rising momentum is required

  Stop loss at the low of the bullish candlestick

Price target at 1.7732


Related News
Dealers Fail To Subscribe Fully to CBN $100m Offer
Forex Market Analysis: USD and JPY Consolidates around 111.84 Support Level, ahead of FED Meeting
Forex: CBN bars erring banks from SME Wholesale Forex window effect May 2, 2017
PMI Reading No 49: A Surge With Forex To Thank
Naira set to appreciate further as CBN plans more injection into inter-bank market
Forex: Dealers pick $85.69m out of $100m offered by CBN
Forex Market Analysis: NZD and USD at Support Area. US GDP Data Release in Focus
CBN Auctions $185.86m in Retail SMIS
More, Not Fewer Exchange Rates


Related News