On Thursday 16th of March, the most anticipated event during the European session is the Bank of England interest rate decision. During the American session, market participants will be keeping an eye on Building Permits report, Philly Fed Manufacturing Index, and Unemployment Claims report.
GBP/USD analysis for 16/03/2017:
The Bank of England is expected to leave the interest rate at the level of 0.25% today, together with asset purchase facility. Nevertheless, the higher inflation mostly driven by food and energy prices will give a reason to the hawkish policy that might be reflected in the minutes of the meeting published at the same time as the statement. Moreover, Brexit anxiety is high with the U.K. government planning to trigger Article 50 on Tuesday will be on the minds of BoE members. Besides, Scotland is calling for a second independence referendum within a two-year time frame.
Let’s now take a look at GBP/USD technical picture in H4 time frame. After the bottom at the level of 1.2108 had been established the price rallied slightly towards the technical resistance at the level of 1.02303, but it was rejected. Only a surprising interest rate hike might send the GBP higher above this level, towards the next important technical resistance at the level of 1.2345 and 1.2478. On the other hand, if the BoE makes predictable decisions, then more sideways price action is expected with a possibility of another test of the technical support at the level of 1.2108.
After yesterday’s FOMC decision, the pair rallied towards the next technical resistance at the level of 1.0713 and broke out above it. If today’s data from the U.S. economy, especially Philly Fed Manufacturing Index (30.2 points expected vs. 43.2 points prior) and Unemployment claims (245k expected vs. 243k prior) are worse than expected, then EUR/USD pair might break out even higher and test the swing high at the level of 1.0828.
Market snapshot – GOLD in a relief rally
The price of Gold managed to retrace 50% of the previous swing down after the FOMC interest rate hike and now is trading around the level of $1,229. Trading conditions look slightly overbought, but the real problem for the gold bulls is the real possibility of a further interest rate hikes in the U.S. This is why the current rally upwards is being considered as a temporary correction, not like a beginning of a new up trend. Any violation of the technical support at the level of $1211 will be the first clue of a possible down trend continuation.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Trading plan for 16/03/2017:
On Thursday 16th of March, the most anticipated event during the European session is the Bank of England interest rate decision. During the American session, market participants will be keeping an eye on Building Permits report, Philly Fed Manufacturing Index, and Unemployment Claims report.
GBP/USD analysis for 16/03/2017:
The Bank of England is expected to leave the interest rate at the level of 0.25% today, together with asset purchase facility. Nevertheless, the higher inflation mostly driven by food and energy prices will give a reason to the hawkish policy that might be reflected in the minutes of the meeting published at the same time as the statement. Moreover, Brexit anxiety is high with the U.K. government planning to trigger Article 50 on Tuesday will be on the minds of BoE members. Besides, Scotland is calling for a second independence referendum within a two-year time frame.
Let’s now take a look at GBP/USD technical picture in H4 time frame. After the bottom at the level of 1.2108 had been established the price rallied slightly towards the technical resistance at the level of 1.02303, but it was rejected. Only a surprising interest rate hike might send the GBP higher above this level, towards the next important technical resistance at the level of 1.2345 and 1.2478. On the other hand, if the BoE makes predictable decisions, then more sideways price action is expected with a possibility of another test of the technical support at the level of 1.2108.
Market snapshot – EUR/USD breaking above resistance
After yesterday’s FOMC decision, the pair rallied towards the next technical resistance at the level of 1.0713 and broke out above it. If today’s data from the U.S. economy, especially Philly Fed Manufacturing Index (30.2 points expected vs. 43.2 points prior) and Unemployment claims (245k expected vs. 243k prior) are worse than expected, then EUR/USD pair might break out even higher and test the swing high at the level of 1.0828.
Market snapshot – GOLD in a relief rally
The price of Gold managed to retrace 50% of the previous swing down after the FOMC interest rate hike and now is trading around the level of $1,229. Trading conditions look slightly overbought, but the real problem for the gold bulls is the real possibility of a further interest rate hikes in the U.S. This is why the current rally upwards is being considered as a temporary correction, not like a beginning of a new up trend. Any violation of the technical support at the level of $1211 will be the first clue of a possible down trend continuation.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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