Forex Analysis: GBP/USD Forms Bullish Correction Pattern

GBP/USD (daily chart) as of March 21, 2013 has settled into a potential bullish correction/reversal pattern in an inverted head and shoulders formation. While these types of patterns are often expected to reverse trends, they can also serve as indicators of potential corrections in a trend without the complete reversal. The current head and shoulders pattern may be just such an indication. The left shoulder in the beginning of March is at 1.4985, the head in mid-March is at 1.4830 (with a hammer candle reversal pattern), and the right shoulder just yesterday is at 1.5025. Within this pattern, the neckline breakout trigger is around the 1.5200 level.

With a neckline breakout, major resistance resides nearby in the 1.5250 area. Further to the upside is the key 1.5400 resistance objective, also around the 38.2% retracement of the downtrend from the 1.6376 high in January to the 1.4830 low in March. If the expected head and shoulders price target is to be reached, the low of the pattern at the head measured to the high of the pattern at the neckline can be projected to the upside towards the 1.5600 area, with is also the the key 50% trend retracement.

James Chen, CMT
Chief Technical Strategist
City Index Group

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Forex Trading Signals for 21st March 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)


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EUR/USD

Trading Range:   1.29900 - 1.28500

UP Trend : BUY

E/P: 1.29299

T/P: 1.29600

S/L: 1.28800

GBP/USD

Trading Range: Trading Range:   1.51800 - 1.50000

Down Trend: SELL

E/P: 1.51027

T/P: 1.50500

S/L: 1.51500

 

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Forex Trading Signals for 20th March 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)


For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

EUR/USD

Trading Range:   1.29900 - 1.28500

Down Trend : SELL

E/P: 1.28897

T/P: 1.28400

S/L: 1.29300

GBP/USD

Trading Range: Trading Range:   1.51400 - 1.50000

Down Trend: SELL

E/P: 1.50988

T/P: 1.50500

S/L: 1.51300

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PLEASE NOTE THAT THE DAILY SIGNALS IS SENT ON TIME TO OUR SUBSCRIBERS ONLY.

For faster signals services and on time real analysis delivered to your email address and phone number
subscribe to our signals service, click here for more details

OPEN A FOREX TRADING ACCOUNT AND WITHDRAW YOUR PROFIT INTO YOUR NIGERIAN BANK ACCOUNT (NAIRA ACCOUNT).

Wish you all a successful forex trading. Always remember to use your stop loss to avoid much loss on your trading account,,,

One Love Brothers

 ................................................................................................................................................................

HIGH RISK INVESTMENT WARNING: Trading foreign exchange, contracts for differences, or spread bets on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. Before deciding to trade the forex market, you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. We provides general advice that does not take into account your objectives, financial situation or needs. The content of this Website must not be construed as personal advice. We recommends you seek advice from a separate financial advisor. 

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Asian stocks mixed on Europe fears; Nikkei off 1.44%

Asian equities are mixed at this hour, but the regions major bourses are mostly in the red as traders remain skittish about the situation in Cyprus and several days of declines for U.S. stocks. 

In Asian trading Friday, Japan’s Nikkei 225 is off 1.44 % after new Bank of Japan Governor Haruhiko Kuroda failed to wow market participants with a bold plan for new monetary easing in his first speech as the central bank’s leader. Kuroda, a vocal critic of the previous BoJ regime, may still deliver what yen bears want to hear when BoJ meets early next month. 

Elsewhere, technical analysis by Credit Suisse indicates that if USD/JPYcracks resistance at 96.71, the pair could quickly head to 100, its highest level in nearly four years. While yen gained 1.2% against the dollar over the past five days leading up to Friday, the Japanese currency is still the worst-performing developed market currency in the world in 2013. 

Hong Kong’s Hang Seng fell 0.24% while the Shanghai Composite added 0.22%. 

In Cyprus Thursday, police clashed with protesters and the European Central Bank warned it may halt funding for the island nation as soon as March 25. Cyrpiot President Nicos Anastasiades has gone so far as to ask Russia to extend terms of a loan Russia granted Cyprus. 

Policymakers are concerned that the plan Cyprus previously rejected to tax bank deposits may not be revisited unless the country finds other avenues to raise the USD7.5 billion the European Union and International Monetary Fund are asking to see before granting bailout assistance. 

Australia’s S&P/ASX 200 rose 0.2% as traders continue to pare bets the Reserve Bank of Australia will not lower rates when it meets in early April. Today, RBA Assistant Governor Edey will speak in Melbourne at 12:45 p.m. local time while Governor Glenn Stevens is slated to speak in Melbourne on March 26. 

New Zealand’s NZSE 50 added 0.10% a day after that country said its gross domestic product rose 1.5% in the fourth quarter, beating expectations for a 0.9% rise, after a expansion of 0.2% in the previous quarter. 

South Korea’s Kospi rose 0.08% while Singapore’s Straits Times Index fell 0.08%. S&P 500 futures are up 0.01% at this writing.

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Dollar near 4-month highs vs. euro, yen higher

The dollar was trading near four-month highs against the euro on Thursday and was sharply lower against the yen as concerns over the economic outlook for the euro zone and ongoing uncertainty over a bailout for Cyprus weighed on market sentiment.

During U.S. morning trade, the dollar was near four-month highs against the euro, with EUR/USD down 0.38% to 1.2885.

Concerns over the situation in Cyprus escalated after the European Central Bank announced that it will continue to supply emergency funding to Cyprus's banks until next Monday. 

The ECB said that further funding would only be considered if an agreement with the European Union and the International Monetary Fund on a bailout is in place.

Meanwhile, concerns over the deteriorating economic outlook for the euro zone weighed after data showed an unexpected contraction in the German manufacturing sector.

The dollar fell to session lows against the yen, with USD/JPY dropping 0.93% to 95.11.

Earlier Thursday, new Bank of Japan Governor Haruhiko Kuroda said the bank is ready to use all possible options to reach its 2% inflation target, but declined to comment on whether he would call an emergency meeting to discuss more easing ahead of the bank’s next policy meeting early next month.

The dollar trimmed gains against the pound, with GBP/USD up 0.29% to 1.5141.

Sterling hit three-week highs earlier after official data showed that U.K. retail sales rose at the fastest pace since March 2012 last month, climbing 2.1% and outstripping expectations for a 0.5% increase.

The dollar pushed higher against the Swiss franc, with USD/CHF rising 0.31% to 0.9480.

The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD slipping 0.10% to 1.0248,AUD/USD rising 0.58% to 1.0437 and NZD/USD jumping 1.42% to 0.8338.

The Canadian dollar found support after official data showed that Canadian retail sales rose by a seasonally adjusted 1% in January, in line with expectations, after tumbling by 2.3% in December.

The New Zealand dollar rallied after official data showed that the country’s economy expanded 1.5% in the fourth quarter, beating expectations for a 0.9% rise.

The Aussie and kiwi were also boosted after data showed that China’s HSBC purchasing managers' index rose to 51.7 in March from 50.4 in February, indicating that the recovery in the world’s second largest economy is still on track.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.03% to 83.04. 

In the U.S., the Department of Labor said the number of people who filed for unemployment assistance last week rose by 2,000 to a seasonally adjusted 336,000, compared to expectations for an increase of 8,000 to 342,000.

A separate report showed that U.S. existing home sales rose 0.8% to a seasonally adjusted 4.98 million units in February, the highest level in three years.

Elsewhere, official data showed that manufacturing activity in the Philadelphia-region expanded at the fastest pace in three months in March, with the Philly Fed manufacturing index rising to rose to 2.0 from February’s reading of minus 12.5.

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Gold futures rise to session high after U.S. jobless claims data

Gold futures rose to the highest level of the session during U.S. morning trade on Thursday, hitting a fresh three-week high after data showed that the number of people who filed for unemployment assistance in the U.S. rose last week.

Sentiment on the precious metal remained upbeat after the Federal Reserve reaffirmed its commitment to leave interest rates unchanged near zero and continue buying USD85 billion in debt each month.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,613.80 a troy ounce during U.S. morning trade, up 0.4% on the day.

Prices rose by as much as 0.5% earlier in the day to hit a session high of USD1,615.80 a troy ounce, the strongest level since February 26.

Gold prices were likely to find support at USD1,560.60 a troy ounce, the low from March 8 and near-term resistance at USD1,619.40, the high from February 26.

Gold futures rose to the session high after the U.S., the Department of Labor said the number of people who filed for unemployment assistance last week rose by 2,000 to a seasonally adjusted 336,000, compared to expectations for an increase of 8,000 to 342,000.

Meanwhile, the Fed announced Wednesday that it will leave its loose monetary policy in place, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.

Fed officials reaffirmed their commitment to keeping short-term interest rates at record low levels at least until unemployment falls to 6.5%. The current unemployment rate is 7.7%.

Moves in the gold price this year have largely tracked shifting expectations as to whether the Fed could bring quantitative easing to an end this year.

Elsewhere, the European Central Bank announced that it will continue to supply emergency funding to Cyprus's banks until next Monday. 

The ECB said that further funding would be considered if an agreement with the European Union and the International Monetary Fund on a bailout is in place.

Negotiations aimed at finding an alternative solution on a bailout deal for the tiny island continued after the country’s parliament rejected a controversial bank deposit tax in a vote on Tuesday.

Cyprus needs to come up with EUR5.8 billion on its own in order to secure EUR10 billion in rescue loans from international creditors.

Also on the Comex, silver for May delivery jumped 1.2% to trade at USD29.15 a troy ounce, while copper for May delivery dipped 0.2% to trade at USD3.439 a pound.

Copper futures erased earlier gains as appetite for riskier assets weakened following the release of disappointing German and French manufacturing data.

Germany’s manufacturing PMI fell to 48.9 in March from 50.3 the previous month, while the French manufacturing PMI came in at 43.9 in March, unchanged from February’s reading.

Also Thursday, data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, rose to 51.7 in March from a final reading of 50.4 in February.

The measure remains above 50.0, indicating an expansion in manufacturing activity.

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