Weekly Forex Signals
Momentum holds sterling while dollar looks to recover
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LONG SIGNAL |
SHORT SIGNAL |
| GBP/USD |
- Buy a break of resistance level at 1.6041
- Buy a break of resistance level at 1.6100
- Buy a bounce at 1.5924
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- Sell a break of support level at 1.5924
- Sell a break of support level at 1.5902
- Sell a failure of breaking the resistance 1.6041
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Fundamental
U.K. retailers offered fewer discounted products and cut prices less in the post-holiday season this year as consumers stepped up spending. Shoppers in Britain spent 132 million pounds ($210 million) online on Dec. 25 alone, a 29 percent increase from a year earlier, according to estimates by payment-processing company Retail Decisions. The number of U.K. customers on Boxing Day, the day after Christmas, increased by 19 percent, Experian Plc said in an e-mailed statement.
Technical
The U.K. currency fails to break standard error channel upper line and swing back downwards. Technically the market shows us a clear downtrend with confirmation of indicators like RSI, which is in a bearish direction, MACD crosses the signal downwards, and Bollinger gives us a selling signal by closing the candle below the middle band.
Trends
Primary Tendency (Daily Chart): The primary tendency breaks uptrend line downwards.
Secondary Tendency (Four Hour Chart): The pair is in a clear downtrend.
Minor Tendency (Hourly Chart): The Minor trend closing on standard error channel upper line.
Resistance
1.6041
1.6100
Support
1.5924
1.5902
Technical Indicators
Crossing of two moving averages and closing price of the candle is below the short term moving averages.
RSI (Relative Strength Index) gives us a bearish signal.
MACD show us weakness in the market bay crossing MACD line to the signal line and break of equilibrium level.
Bollinger gives us a bearish signal by closing the candle below the middle band.
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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.
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