GBP/USD Forecast: Strong uptrend but, its end is not far away

GBPUSD 13th May, 2015

GBP/USD (currently at: 1.5745) continued uptrend run to break 1.5699 and it fell after touching 1.5766. This is what I expected in this post.

The BOE is still watching the economic data of UK with no serious action. However, the recent data was strong enough to push everyone to buy sterling pound, this is what I call the election sales. On the other hand, the dollar is still suffering from uncertainty and mixed expectations about the timing of the first rate hike. In addition, moderate to weak economic data releases had effect too on the US dollar. Sterling pound is strong enough to stay for a while within this range and the way to 1.5805 (the next major resistance) should be very easy.

My technical overview adds another space for the current uptrend rally again and I can see that there is higher chances that this uptrend will last for a while till we break 1.5805 first and then, we will see whether this trend will continue or not. This move will be struggling battles between bears and bulls during the next few days or weeks and the sideline moves will be noticed once we move above 1.5805. Buy GBP/USD and watch this resistance level: 1.5805 as a checkpoint for this rally. Our close support levels are: 1.5000 and 1.5565

The GBP/USD has the following major resistance and support levels:

  • RESISTANCE: 1.6000
  • SUPPORT: 1.4334

Breaking these levels in any direction will take us higher or lower.

My Daily BUY/SELL advice (30 pips stop-loss applied):

  • Sell: at 1.5805 – Take profit 1.5705 (100 pips profits)
  • Sell: at 1.5990 – Take profit 1.5890 (100 pips profits)
  • Buy: at 1.5650 – Take profit 1.5750 (100 pips profits)
  • Buy: at 1.5550 – Take profit 1.5750 (200 pips profits)
  • Buy: at 1.5565 – Take profit 1.5665 (100 pips profits)

This review is valid during trading week: 13th to 15th of May, 2015

GBP/USD Forecast: Strong uptrend will last or .. ?

GBPUSD 29th April, 2015

GBP/USD Analysis

GBP/USD (currently at: 1.5420) broke the strong resistance 1.5429 easily and had a rally during the last week as I’ve previously mentioned in my previous post.

The BOE is still watching the economic data of UK with no serious action. On the other hand, the dollar is suffering from uncertainty and mixed expectations about the timing of the first rate hike. Sterling pound will stay for a while within this range and the way to 1.5805 (the next major resistance) should not be that easy.

My technical overview adds extra space for the current uptrend rally and I can see that there is higher chances that this uptrend will last for a while till we touch 1.5805. The move will be slower a little bit than what happened the last 48 hours. I recommend buying this pair with caution this time because mixed moves might occur sharply. Buy GBP/USD and watch these resistance levels: 1.5699 and 1.5805 as checkpoints for this rally. Our close support levels are: 1.5000 and 1.4565

The GBP/USD has the following major resistance and support levels:

  • RESISTANCE: 1.5805
  • SUPPORT: 1.4334

Breaking these levels in any direction will take us higher or lower.

My Daily BUY/SELL advice (30 pips stop-loss applied):

  • Sell: at 1.5680 – Take profit 1.5600 (80 pips profits)
  • Sell: at 1.5790 – Take profit 1.5690 (100 pips profits)
  • Buy: at 1.5350 – Take profit 1.5500 (150 pips profits)
  • Buy: at 1.5250 – Take profit 1.5350 (100 pips profits)
  • Buy: at 1.5010 – Take profit 1.5090 (80 pips profits)

This review is valid during trading week: 29th-30th April – 1st of May, 2015

GBP/USD Forecast: Mixed trends

GBP/USD 22nd, April 2015

GBP/USD Analysis

GBP/USD (currently at: 1.5025) seems to be attractive for the buyers. I am changing my technical look to this pair for a while.

The BOE is not behind this move, the US dollar is weaker against sterling pound and it is clear that this weakness is the main reason behind what is happening. BOE is watching the inflation of England and we’ve to wait till things become much obvious.

My technical overview has a limited change and I can see that there is limited uptrend and this is a reason to buy GBP/USD with caution. I recommend buying this pair around this level (1.5000-1.5030) only and it is recommended to use small stop-loss because it might fall hard again in any time. We can buy GBP/USD and watch these resistance levels: 1.5185 and 1.5429

The GBP/USD has the following major resistance and support levels:

  • RESISTANCE: 1.5429
  • SUPPORT: 1.4334

Breaking these levels in any direction will take us higher or lower.

My Daily BUY/SELL advice (30 pips stop-loss applied):

  • Sell: at 1.5395 – Take profit 1.5295 (100 pips profits)
  • Buy: at 1.5050 – Take profit 1.5120 (70 pips profits)
  • Buy: at 1.5020 – Take profit 1.5070 (50 pips profits)
  • Buy: at 1.5000 – Take profit 1.5100 (100 pips profits)

This review is valid during trading week: 22nd-24th April, 2015

GBP/USD Forecast: Inflation might pushes BOE to delay interest rate hike

GBP/USD 9th April, 2015

GBP/USD (currently at: 1.4785) is still giving a clear downtrend signal. However, the bulls are stronger than I expected and they have enough control till the moment to stay above the near support at: 1.4635. Personally, I can not recommend buying this pair at this level again even with these like-paparazzi attempts to touch the strong resistance around 1.5167 at any price.

We will wait today’s interest rate announcement from the BOE before trading this pair. I am still expecting no serious action from the BOE during April 2015 driven by the (0%) inflation rate in UK during March, 2015. This data is not encouraging to raise the interest rate so, we will have to wait till we see any real change in BOE plan. In addition, Fed. minutes are still mixed and are not giving any clear hint whether the rate hike will be in june, september or even in 2016. Fed. wants to evaluate the economic data every meeting and this will give every future meeting extra importance.

My technical overview is the same and I can not see any reason to buy GBP/USD at this level without falling to 1.4334 level. I recommend buying this pair around this level (1.4334) only and it is recommended to use good stop-loss because it might fall a little bit harder before going up to test any resistance again. Put in mind that if BOE surprised the market and pushed the raise button, we can buy GBP/USD on the break of 1.5167 safely, or wait till we see the market reaction on the surprise

The GBP/USD has the following major resistance and support levels:

  • RESISTANCE: 1.5167
  • SUPPORT: 1.4334

Breaking these levels in any direction will take us higher or lower.

My Daily BUY/SELL advice (30 pips stop-loss applied):

  • Sell: at 1.4900 – Take profit 1.4800 (100 pips profits)
  • Sell: at 1.5140 – Take profit 1.5040 (100 pips profits)
  • Sell: at 1.4800 – Take profit 1.4700 (100 pips profits)
  • Buy: at 1.4340 – Take profit 1.4400 (60 pips profits)

This review is valid during trading week: 9th-15th April, 2015

The Mystery of GBP/USD

GBP/USD 19th March, 2015

GBP/USD (currently at: 1.4730) is giving a clear sign of downtrend. Honestly, I can not recommend buying this pair at this level again. The BOE is not that serious about raising the interest rate this month, we will have to wait April, 2015 to see any signs of a change in BOE plan.

Yesterday, after the dovish statement of the American central bank, I can see a higher probability for strong US dollar the next 2 weeks. My technical overview can not see any serious buyers for the GBP/USD at this level without falling to 1.4334 level. I recommend buying this pair around this level and use good enough stop loss because it might fall a little bit harder before going up to test any resistance.

The GBP/USD has the following major resistance and support levels:

  • RESISTANCE: 1.5167
  • SUPPORT: 1.4334

Breaking these levels in any direction will take us higher or lower.

My Daily BUY/SELL advice (30 pips stop loss applied):

  • Sell: at 1.4730 – Take profit 1.4660 (70 pips profits)
  • Buy: at 1.4350 – Take profit 1.4400 (50 pips profits)

This review is valid during trading week: 21st-25th March, 2015