Weekly Forex Signals
BOE could cut rates after dollar continues to dominate against Sterling
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LONG SIGNAL |
SHORT SIGNAL |
| GBP/USD |
- Buy a break of resistance level at 1.7875
- Buy a break of resistance level at 1.7960
- Buy a bounce at 1.7550
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- Sell a break of support level at 1.7550
- Sell a break of support level at 1.7450
- Sell a failure of breaking the resistance 1.7875
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Fundamental
The pound fell against the dollar amid speculation the Bank of England will cut interest rates this week to bolster an economy that may be in a recession. The British currency also rose to the highest level in seven months against the euro after BNP Paribas SA agreed to take control of Fortis in Belgium and Luxembourg for 14.5 billion euros ($19.7 billion) and the German government, banks and insurers agreed on a 50 billion-euro rescue for Hypo Real Estate Holding AG after an earlier bailout faltered.
Technical
The U.K. currency declined to 1.7587 and we can see the drop of 4 percent. Technically the market trend is still clear downtrend as we can see strong supply in the market, based on technical indicators like RSI, which is in a bearish direction, MACD crosses the signal line and is pointing downwards, and Bollinger gives us a selling signal by closing the candle below the middle band.
Trends
Primary Tendency (Daily Chart): The primary tendency is in a clear downtrend.
Secondary Tendency (Four Hour Chart): The pair fails to break the channel upper line.
Minor Tendency (Hourly Chart): The Minor trend shows us a break of the support level.
Resistance
1.7875
1.7960
Support
1.7550
1.7450
Technical Indicators
Crossing of two moving averages and closing price of the candle is below the short term moving averages.
RSI (Relative Strength Index) pointing downwards.
MACD crosses the signal line and is pointing downwards.
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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