Economic events-
Monday-
· ISM non manufacturing PMI- US
Tuesday-
· Services PMI
· Trade balance- US
Wednesday-
· Fed chairwoman testifies- US
Thursday-
· Bank rate
· Unemployment claims- US
Friday-
· Jolts job opening- US
· Manufacturing production
Weekly forecast-
The pair is moving its last leg of its uptrend aiming at 1.70 and 1.7050 levels. This week, the trading pattern is sell on the rally. The pair generated a sell signal at 1.692 levels. During Friday's trading session, the pair took support at the previous top at 1.6823 levels. For the near term perspective until the pair trades above the 1.6823 level, it will try to move its final destination to 1.70 levels. The pair was struggling to close above 1.6823 levels for the last 2 months and finally closed above it. The RSI in the weekly chart indicates a positive divergence, but limited upside availability because in the daily chart, RSI already gave a sell call. On the down side, the pair has strong support at 1.6778 (weekly support).
We expect the pair to face selling pressure later today or tomorrow, so it is safe to short at higher levels or sell below 1.6823 is the safest method of trading. On the downside, 1.6823 will act as a key level this week. Below this, 1.6791, 1.6763, 1.673 and 1.6696 are initial targets. A day close below the 1.6823 level, the bear bells will start and the bear strength will tighten a day close below 1.6696 levels.
Intraday- key level 1.6826
In Asia's trading session, the pair is trading at 1.6878 levels. The pair has support between 1.6866-1.6872 levels and resistance at 1.6888 levels. On the down side, below 1.6866, the pair will drift all the way towards 1.68, 1.6763 and 1.674 levels.
Recommendations-
Intraday-
Buy above 1.6888
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Weekly forecast of GBP/USD for May 05-09, 2014 . Thanks for your support on Weekly forecast of GBP/USD for May 05-09, 2014
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