Weekly Forex Signals
Nine day decline might get worst for the pound against dollar.
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LONG SIGNAL |
SHORT SIGNAL |
| GBP/USD |
- Buy a break of resistance level at 1.7975
- Buy a break of resistance level at 1.8005
- Buy a bounce at 1.7745
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- Sell a break of support level at 1.7745
- Sell a break of support level at 1.7540
- Sell a failure of breaking the resistance 1.7975
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Fundamental
The U.K. pound advanced before a government report that may show producer-price inflation held near the highest level in more than two decades, making it less likely the Bank of England will cut interest rates. The pound snapped a nine-day decline against the dollar before a government report economists forecast will show prices charged by factories in August probably rose 10.2 percent in the year, the same as in July. Bank of England policy makers kept the main rate at 5 percent on Aug. 4 as they seek to balance the risk of a recession with the fastest inflation in more than a decade.
Technical
The Sterling may continue its downtrend versus U.S. dollar as we can see strong volatility in the market, based on technical indicators like RSI, which breaks 70% line downwards, MACD crosses the signal line and breaks the equilibrium level, and Bollinger gives us a bearish signal by closing the candle below the higher band.
Trends
Primary Tendency (Daily Chart): The primary tendency gives us a clear downtrend.
Secondary Tendency (Four Hour Chart): The pair couldn't break standard error channel upper line.
Minor Tendency (Hourly Chart): The Minor trend had a strong retracement.
Resistance
1.7975
1.8005
Support
1.7745
1.7540
Technical Indicators
Moving Average: Crossing of two moving averages and closing price of the candle is below the short term moving averages
RSI: RSI (Relative Strength Index) is in a clear downtrend.
MACD: MACD crosses the signal line and breaks the zero level.
Bollinger Bands: Bollinger gives us a bearish signal after 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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