Weekly Forex Signals
Momentum holds U.S. dollar while sterling looks to recover
|
LONG SIGNAL |
SHORT SIGNAL |
| GBP/USD |
- Buy a break of resistance level at 1.6500
- Buy a break of resistance level at 1.6565
- Buy a bounce at 1.6430
|
- Sell a break of support level at 1.6430
- Sell a break of support level at 1.6375
- Sell a failure of breaking the resistance 1.6500
|
Fundamental
Unemployment in the U.S. probably rose at a slower pace and the manufacturing slump eased this month as evidence mounted that the end of recession is in view, economists said before reports this week.
The jobless rate rose 0.2 percentage point to 9.6 percent, the highest level in 26 years. Government efforts to stabilize housing and consumer spending are only now starting to pay off, indicating it will take months before a recovery develops. The job market will remain one of the biggest threats to the emerging rebound as companies from General Motors Corp. to Kimberly-Clark Corp. focus on cutting costs by trimming payrolls.
Technical
The U.K. currency breaks previous resistance and continues its uptrend. Technically the market shows us a strong demand with some confirmation of indicators like RSI, which is above 50% level, we can see divergences on MACD and Bollinger gives us a bullish signal by closing the candle above the middle band.
Trends
Primary Tendency (Daily Chart): The primary tendency is in an uptrend but forms triple top.
Secondary Tendency (Four Hour Chart): The pair is in a clear range market.
Minor Tendency (Hourly Chart): The Minor trend breaks Fibonacci fan first level.
Resistance
1.6500
1.6565
Support
1.6430
1.6375
Technical Indicators
The prices are still above two moving averages.
RSI (Relative Strength Index) giving us a bullish signal.
MACD show us weakness in the market by crossing MACD line to the signal line.
Bollinger gives us a bullish signal by closing the candle above the middle band.
Finotec Group Inc.
http://www.finotec.com/
Disclaimer: FINOTEC Trading's Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.
|
