The investor sentiment deterioration again cut the greenback. In addition the latest statistics did not please the markets. The USA inflation slowed to -0.1% m / m in December when investors expected – 0.0%. That might be a negative signal about the faulty state of the economy. This, in turn, may have an additional impact on the traders’ expectations relative to the second Fed rate hike.
The price is finding the first support at 0.9960, the next one is at 0.9850. The price is finding the first resistance at 1.0100, the next one is at 1.0190.
There is a confirmed and a strong buy signal. The Sterling is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement forming a “Golden Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
We advise to long with the first target – 1.0100. When the pair consolidates above the first target, we can open deals to the level of 1.0190.