A look into these two major economies on a fundamental & Technical level, indicates the Great British Pound advancing against a weaker US Dollar is in play.
Suggestions of why the dollar will struggle against the Great British Pound. (
GBPUSD
)
Fundamentals.
1) Republicans health bill collapses. Second attempt by republicans to replace Obama care has collapsed.
2)Dollar reaches its lowest since September 2016.
3)Global stocks pulled lower, since the dollar is the world traded currency they say if the dollar sneezes the world catches a fever, global stocks lowering definitely will have an effect on the dollar.
4)Goldman Sach and the Bank of America earnings are watched, investors will be keeping an eye on the two banks before market open.
5)U.K inflation posts its biggest fall since 2015. although the Great British pound has been performing rather well, their inflation took a dip, possible because of the poor oil performances in the past month
Despite the disappointing inflation resultsc the GBP recently touched a 10 month high against the dollar and further advances are in sight.
Fundamentals provided by @investing.com
Technical Analysis
Market is forming a bounce on our identified 4hr Support area of 1,29700, on the 4hr charts this level is proven to be a well respected area.
The blue highlighted zone (1.30345) is a strong daily resistance area which will determine if we buy or stall the currency pair, for a buy signals we should be patient and wait for a weekly close above the level to confirm our BUY orders
once we have a weekly close above 1.30345 we can set our Take profit at 1.33300, as this is an area of a monthly extended resistance area where the past has proven market resistance here, we want to be out of the trade by the time the market reaches this level (TP 1.33300) Our stop loss will be at 1.29700 our 4hr support area which does not break easily, set the stop loss 10-15 pips below the level to avoid being stopped out of your trade, Anything can happen in forex.
FULL out analysis by: Somila Sigenu, Chief analyst and executive trader at Stallions Investments.
Follow me to receive weekly ideas with full our Fundamental and technical analysis.
and Follow @StallionsFX on instagram.
Suggestions of why the dollar will struggle against the Great British Pound. (
GBPUSD
) Fundamentals.
1) Republicans health bill collapses. Second attempt by republicans to replace Obama care has collapsed.
2)Dollar reaches its lowest since September 2016.
3)Global stocks pulled lower, since the dollar is the world traded currency they say if the dollar sneezes the world catches a fever, global stocks lowering definitely will have an effect on the dollar.
4)Goldman Sach and the Bank of America earnings are watched, investors will be keeping an eye on the two banks before market open.
5)U.K inflation posts its biggest fall since 2015. although the Great British pound has been performing rather well, their inflation took a dip, possible because of the poor oil performances in the past month
Despite the disappointing inflation resultsc the GBP recently touched a 10 month high against the dollar and further advances are in sight.
Fundamentals provided by @investing.com
Technical Analysis
Market is forming a bounce on our identified 4hr Support area of 1,29700, on the 4hr charts this level is proven to be a well respected area.
The blue highlighted zone (1.30345) is a strong daily resistance area which will determine if we buy or stall the currency pair, for a buy signals we should be patient and wait for a weekly close above the level to confirm our BUY orders
once we have a weekly close above 1.30345 we can set our Take profit at 1.33300, as this is an area of a monthly extended resistance area where the past has proven market resistance here, we want to be out of the trade by the time the market reaches this level (TP 1.33300) Our stop loss will be at 1.29700 our 4hr support area which does not break easily, set the stop loss 10-15 pips below the level to avoid being stopped out of your trade, Anything can happen in forex.
FULL out analysis by: Somila Sigenu, Chief analyst and executive trader at Stallions Investments.
Follow me to receive weekly ideas with full our Fundamental and technical analysis.
and Follow @StallionsFX on instagram.