Lesser than forecast UK labor market details, coupled with no change in members votes supporting either interest rate alternation or the monetary policy, provided across the board weakness to the GBP. The Pound is on the way to register consecutive second daily plunge against its Australian and Japanese counterpart while is on the verge of signaling first negative closing in three against New Zealand Dollar. Market players now await monetary policy meeting of the Federal Reserve, scheduled for later Wednesday, in order to determine near-term moves of the Forex market.
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Meanwhile the following article discusses some of the technical traits of GBPAUD, GBPNZD and GBPJPY.
Even after registering heavy decline, GBPAUD struggled between the 50-day SMA and the support-line of the descending trend-channel, closely followed by the 38.2% Fibonacci Retracement of its November 2014 – February 2015 up-move, near 1.9200 mark. Considering the current decline of the pair, supported by weaker data points from UK, the pair is likely to break below the multiple highs marked in December 2014, near 1.9200, and could decline towards testing 50% Fibo. near 1.8940. A sustained break of 1.8940 is followed by the pair’s decline towards testing 1.8790 and the 1.8680 support, encompassing 61.8% Fibo. On the upside, a sustained break of 1.9470 and the 1.9500 mark, signaling 23.6% Fibo, could again fuel the pair towards testing the resistance line of the descending trend-channel near 1.9730. A sustained break of the trend channel fuels the possibility for the pair to rally towards 1.9930 and the year high of 2.0025.
GBPNZD continued trading near the 200-day SMA and the current weakness suggests the pair close below 2.0000 mark for the first time since mid-January. Given the pair’s close below 2.000 mark, it can extend its decline towards testing 61.8% Fibonacci Retracement of its January – February up-move, near 1.9880, breaking which it can drift further towards testing 1.9730 and 1.9640 before testing the sub-1.9500 mark. Alternatively a close above 2.0000 mark could reverse the pair’s recent decline and marks the 2.0270, 383.2% Fibo, as an immediate resistance for the pair before it rallies to 2.0350 and 2.0520 resistance level. A daily close above 2.0520 could fuel the pair’s up-move towards 2.0770 – 2.0780 resistance.
GBPJPY is trading below its 200-day SMA, also breaking the ascending trend-line support, for the first time during 2015. A daily close below 178 could immediately signal pair’s decline towards testing 176.30, 61.8% Fibonacci Retracement of its October – December 2014 up-move, and the 175.30 support. Further, extended southwards trading of the pair could result 174.50 and the 173.20 support test. Should oversold oscillators trigger pullback and the pair closes above its immediate resistance, 179.50, it could rally to 180.70 and the 38.2% Fibo, near 181.50. On the up-move beyond 181.50, the descending trend-line resistance, near 184 mark restricts the pair’s medium-term up-move.
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