GBP/USD review for June 19, 2015

19 June, 2015

General overview

The National Statistics Office has published the May UK retail sales data. We mark the average earnings growth acceleration at the end of March and April which indicates the consumer spending increase. In this context, we expect the data output bit better than the forecasted medians. The data shed a growth by 0.2% m/m è 4.6% y/y

In view of the US Federal Reserve negative economic forecasts - the pair may reach the psychological level of 1.5950 in the short term.

At the session the British pound session significantly strengthened against the US dollar, breaking through the two strong resistance levels: 1.5670, 1.5775. The levels breakthrough was amid the increased volume.

The price is finding the first support at 1.5775, the next one is 1.5670. The price is finding the first resistance at 1.5950, the next one is 1.6080.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD histogram is in a positive territory. The price is consolidating.

Trading recommendations

The approach to the level of 1.5775 may lead to a price rebound upwards. The potential rebound targets are the resistance levels of 1.5950, 1.6080

Source link  
US-China trade war fears intensify

Asian equity markets were mixed on Thursday as demand for risky assets continued to dampen on concerns that the world’s two biggest economies...

Equities decline on political concerns

Asian stock markets moved lower on Wednesday as a political turmoil in the United States following the sacking of US Secretary of State Rex Tillerson...

Equity and currency markets consolidate

European stock markets were able to maintain a positive mood and displayed moderate growth. In general, market remained positive sentiment...

Positive sentiment in the stock markets

European markets were under pressure for more than half a day, but by the start of the American session, indices were able to show positive dynamics...

The new week begins positively

The new trading week will be full of the information and officials’ speeches. The focus of the markets will be on economic data, the most important...

Expectations of higher rates

On Thursday global stock markets continue to decline after a sharp sell-off in US stock exchanges on Wednesday. The risks are more likely to be exerted...

Low activity in asian markets

Asian stock indexes traded mostly in green territory following solid gains on Wall Street in the prior session, but many markets remained close in...

Asian stock markets mostly higher

Asian stock markets started broadly higher this week, with commodity prices pushing some key names in the region to the upside as the dollar corrected downwards...

Market selloff: a mistake, really?

Wall Street top three indexes went down on Monday following last week’s employment report by the US Labor Department. Data showed the economy added...