The Bank of England and Economic Data Put the Pound and the Dollar in Focus
For the EUR
It’s a relatively busy day ahead on the economic calendar. German and Eurozone unemployment figures are due out later this morning, along with prelim inflation figures out of Germany.
Expect Germany’s unemployment change figures for January to have the greatest impact on the EUR.
For the Pound
It’s a big day ahead on the economic calendar. While there are no material stats to provide direction, the BoE is in action.
The markets had anticipated a rate cut at the start of the year. Economic data out of the UK last week shifted sentiment.
That leaves the vote count, the minutes, and BoE Governor Carney’s speech to influence on the day
GBP/USD Forecast: Awaits BoE policy decision for some meaningful impetus ahead of Brexit
Short-term technical outlook
From a technical perspective, nothing seems to have changed much for the pair and bearish traders are likely to wait for a sustained break through a support marked by a near three-month-old ascending trend-line support. This is followed by monthly lows, around the 1.2955 region, which if broken should pave the way for a further downfall and accelerate the fall further towards the 1.2905-1.2900 area (December monthly lows) en-route the 1.2830-25 support zone.
On the flip side, immediate resistance is pegged near the 1.3050 region, which if cleared might trigger a short-covering move back towards the 1.3100 round-figure mark
According to Trading Central (3rd party RIA) the GBPUSD could be heading DOWN to 1.2760 if it does not go ABOVE 1.3275
* Past performance is not a guarantee of future performance
https://europefx.tradingcentral.com/Product?PK_ANALYSE=10595007
| Number of Lots: | Required Margin: | Risk Management (200%): | Potential Profit/Loss 1.2760 |
|---|---|---|---|
| 1 | € 3,941.04 | € 7,882.08 | € 2,271.50 |
| 5 | € 19,705.21 | € 39,410.42 | € 11,357.50 |
| 10 | € 39,410.42 | € 78,820.84 | € 22,715.00 |
| 25 | € 98,526.05 | € 197,052.10 | € 56,787.50 |
| 50 | € 197,052.10 | € 394,104.20 | € 113,575.00 |
According to Trading Central (3rd party RIA) the EURGBP could be heading UP to 0.8776 if it does not go BELOW 0.8362
* Past performance is not a guarantee of future performance
https://europefx.tradingcentral.com/Product?PK_ANALYSE=10582777
| Number of Lots: | Required Margin: | Risk Management (200%): | Potential Profit/Loss 0.8776 |
|---|---|---|---|
| 1 | € 3,333.33 | € 6,666.67 | € 3,440.64 |
| 5 | € 16,666.67 | € 33,333.33 | € 17,203.18 |
| 10 | € 33,333.33 | € 66,666.67 | € 34,406.36 |
| 25 | € 83,333.33 | € 166,666.67 | € 86,015.90 |
| 50 | € 166,666.67 | € 333,333.33 | € 172,031.80 |
