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The pound has remained relatively range bound overnight despite producer prices rising less than expected, leaving the door open for the BoE to remain on hold. The price of goods leaving British factories rose 1.7% in October compared to the same month last year, accelerating from a 0.4% rise in September, the Office for National Statistics reported Friday. On a monthly basis, prices were up 0.2%. Economists had forecast a 0.4% monthly rise and a 1.8% annual increase. The central bank added £25 billion to their asset purchase program but is anticipating that inflation wil rise sharply over the near-term on higher energy costs and a weak sterling.
Technical
The U.K. currency gives us a rebound signal after forming a higher high. Technically the market change its trend as we can see strong demand in the market, based on technical indicators like RSI, which is in a bullish direction, MACD crosses the signal line and is pointing upwards and Bollinger gives us a buying signal by closing the candle above the middle band.
| Long signal | Short signal | |
| Buy a break of resistance level at 1.6835 | Sell a break of support level at 1.6695 | |
| GBP/USD | Buy a break of resistance level at 1.7045 | Sell a break of support level at 1.6617 |
| Buy a bounce at 1.6695 | Sell a failure of breaking the resistance 1.6835 |
GBP/USD (Daily Chart)
The primary tendency is in a clear uptrend.
GBP/USD (4 Hour Chart)
The pair breaks Standard error channel middle line.
GBP/USD (Hourly Chart)
The Minor trend bounced on pivot point level.
Resistance
1.6835
1.7045
Support
1.6695
1.6617
Tags: GBP/USD
The pivotal support at 1.4970 showed major strength in front of the euro versus the dollar
December 1st, 2009 by admin | No Comments | Filed in Forex today analysis by MAXFOREXTRADER, forex market commentThe pivotal support at 1.4970 showed major strength in front of the euro versus the dollar; thus, pushing it strongly to the upside to fail the continuation of the bearish correction and starting by that a new bullish wave, as presented in yesterday’s scenario, where it currently stands in front of the pivotal horizontal resistance at 1.5080; while we await a clear breach that opens the way to for further bullish intraday trading for today that targets 1.5200. It is vital that 1.4970 remains intact for our expectations to prevail.
The trading range for today is among the key support at 1.4825 and the key resistance at 1.5145.
The general trend is to the upside as far as 1.4135 remains intact with targets at 1.6000.
Support 1.5000 1.4970 1.4925 1.4860 1.4825
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Resistance 1.5080 1.5145 1.5200 1.5290 1.5340
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Recommendation Based on the charts and explanations above our opinion is buying the pair with the breach of 1.5080 targeting 1.5200 and stop loss below 1.5000, might be appropriate.
Tags: EUR/USD