Daily Forecast - 26 February 2015
GBPUSD
GBPUSD key to direction is strong resistance at 1.5545/50. Despite yesterday's strong breakout there is a good chance of a high for the day here. Shorts need a stop above the 100 day moving average at 1.5570. Be ready to go with a break higher using 1.5550 as support to target 1.5585 then trend line resistance at 1.5610/20.
The pair are severely overbought now & failure to beat 1.5545/50 targets 1.5490/85. This could hold initially but a break lower meets good support at 1.5460/055. Try longs with stops below 1.5430. Be ready to go with a break lower using 1.5460 as resistance for a move towards excellent short term support at 1.5412/08. A low for the day expected but longs need stops below 1.5490.
EURUSD
EURUSD first resistance at 1.1355/60 but above here look for a retest of strong resistance at 1.1435/40. Try shorts with stops above 1.1460. Just above we run in to resistance at 1.1484/98. It is only above here that barriers are removed for a retest of February highs at 1.1525/32. A high for the day would be expected if we reach this far so try shorts with a stop above 1.1550.
Holding below 1.1350 targets 1.1320/15 then trend line support & February low at 1.1280/70. Try longs with stops below 1.1255. A break lower then targets 1.1230/25 & 1.1195/90. Just be aware that further losses would risk a retest of January lows at 1.1113/1.1098.
The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.