GBPUSD

The GBP/USD pair fell to a low of 1.5330, before closing the previous session slightly higher at 1.5336. The pair witnessed a moderate rally to 1.5425 on Wednesday before the European desks resumed the USD buying that resulted in the pair erasing gains and falling well below its 200-DMA located located yesterday at 1.5402.

At the moment, the pair is trading at 1.5352. The morning report of the previous session had talked about the possibility of the British Pound rising ahead of the today’s GDP data. However, that did not happen on account of the broad based USD rally. The UK first quarter GDP is widely expected to be revised higher to 2.5% from 2.4% year-on-year and to 0.5% from 0.4% quarter-on-quarter. Given the upbeat expectations, we may see the GBP/USD pair making an attempt at 1.5376 and 1.5398 (200-DMA) ahead of the data.

On technical charts, the pair manages to avoid a daily close below 1.5336 (38.2% R of 1.4564-1.5813). A rejection at 1.5425 followed by a breach of the 200-DMA support and the sell-off to 1.5330 could mean the bears are likely to be in control so long as the pair trades below 1.5425. Nevertheless, a minor corrective bounce to 1.5376-1.5398 (200-DMA) could be seen on the back of an oversold RSI on the intraday time frame. On the downside, a break below 1.5330 (100% Fib Expansion level of 1.4564-1.5445-1.5698), could open doors for sub-1.53 levels.


EUR/USD Analysis: Optimism over Greek deal could push the pair higher to 1.0963

EURUSD

The EUR/USD pair recovered from the low of 1.0818 after Reuters reported Greek government official saying Brussels group has started procedures to draw up a staff-level agreement. The optimism was further supported by Greek PM Tsipras who said “we have made many steps, we are on the final stretch towards a positive deal; we will present details on the deal soon; there are still different approaches among lenders; wages and pensions will be paid normally this week; there is no risk to bank deposits”.

The EUR could continue to benefit today from the optimism regarding Greece. In the meantime, the pair could be influenced by the batch of sentiment indices – Consumer and Industrial confidence, Services sentiment, Business climate. Ahead in the day, the investors would also keep an eye on the weekly jobless claims data in the US.

On the daily charts, we see a spinning bottom candle stick pattern after an almost 600-pip fall in the last eight sessions. The pair also managed to close just above 1.0898 (76.4% Fib expansion of 1.1465-1.1060-1.1206). It is worth nothing, the pair was pushed higher to 1.0927 in the early European session on Wednesday after it rose above 1.0898. A similar move is being witnessed today as the pair rose to a high of 1.0919. The immediate gains could be capped around 1.0930 (50-DMA). The bullish RSI on the hourly time frame, coupled with breach of falling trend line by the RSI on the 4-hour chart could result in a break above 1.0930, thereby opening doors for a re-test of 1.0963 (50% Fib R of 1.0461-1.14565). On the downside, a break below 1.0898 would re-enforce the bears and lead to a sell-off to 1.08.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD stabilizes near 1.0800 as trading action turns subdued

EUR/USD stabilizes near 1.0800 as trading action turns subdued

EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.

EUR/USD News

GBP/USD extends sideways grind above 1.2600

GBP/USD extends sideways grind above 1.2600

GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.

GBP/USD News

Gold pulls away from daily highs, holds above $2,200

Gold pulls away from daily highs, holds above $2,200

Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.

Gold News

XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC

XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC

XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase. 

Read more

Portfolio rebalancing and reflation trades emerge into Q2

Portfolio rebalancing and reflation trades emerge into Q2

Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.

Read more

Majors

Cryptocurrencies

Signatures