U.K. retail sales were projected to fall 0.5% in February after expanding 1.2% in the previous month but came at -0.8% higher than most forecast have expected, that prompted the GBPUSD to move lower and currently at the 1.5780 price level.
Most of the European numbers report have been negative as the Euro zone contraction is well evidenced from the French and German Manufacturing and services sectors. The EURUSD is down respectively at the 1.3150 with a low at 1.3132; thus penetrating the important support of 1.3180. The critical price for the week's closing should be closely monitored and this prices is indeed the 1st signal of a bear market with the USDx recovering from these reports.
Furthermore, the drop on the precious metals has added to the positive shift of investors investments to the Reserve currency of the US Dollar. And not to mention the the concern of global slowdown with EU contraction and slowdown in manufacturing data from China.
Meanwhile, the GBPUSD is currently at 1.5790 as of this writing coming from its psychological price resistance at the 1.5880-1.5920 range and signals its weakness starting from the report. The levels where it may seek some valid support would be at the 1.5680-1.5700 price range.
However, for now that the pullback weighed heavier with the GBPJPY cross than the EURJPY pair, ideally the liquidation of these positions we have held since the 12th of March makes it more sensible to settle; as we shift from Pound correlation with the Japanese Yen, to the US Dollar. Continue in market view report at http://www.megatrade101.com/
No comments:
Post a Comment