Wednesday 15 March GBPUSD Day Close Analysis, following the expected FED rate hike of 25bps, the USD slid rapidly. The drop remains significant and has left many wondering as to the reason for the greenback’s decline. Will USD bears remain in control?
AtoZForex – As mentioned yesterday, if we would see further downside for the USD this week? Well I believe we will. With the BoJ, BoE and SNP meetings tomorrow, will markets consolidate? How will the markets react?
Wednesday 15 March GBPUSD Day Close Analysis
Following the FED rate hike, will we see the GBP continue to strengthen against the greenback, or will we see a rate hike by the BoE Monetary Policy Committee? Current expectations by the markets are for the BoJ to keep their focus on the yield curve control, whilst the SNB is expected to keep its deposit rate unchanged at 0.75%. The markets expect BoE to remain neutral and keep rates at the current level of 0.25%.
15 MARCH GBPUSD Day Close Analysis
At the end of the day, the Dollar weakened after the FED rate hike. GBP closed near last weeks opening level. below Monday close with no clear trading direction.
On the Daily chart the daily 20sma is sloping down and 100sma is flat with the 20sma below the 100sma. At the time of writing, MACD and the histogram are below the neutral level with RSI also below the 50 level. Price is below the two moving averages.
Moving Averages – Both the 20sma and 100sma are sloping up with the 20sma above the 100sma at the time of writing this article.
MACD –MACD histogram and signal line are well above the neutral line
RSI – RSI is above the 50 level .
Key levels – Price breached several H1 levels at 1.2169, 1.2187 and 1.2212 levels and then bouncing off the strong monthly resistance level at 1.2252 level. It was surprising how easily this resistance level was broken. Intraday day bias has clearly shifted to the upside provided the 1.2255-50 level remains intact. We cannot rule out a move to the upside towards the 1.2370 level , with a test of the key strong resistance level at 1.2380-85 level. On the down side, if we see price break and remain below the 1.2250, we could see price move towards the 1.2225-20 level, with possible further move towards the 1.2190-85 level.
Yesterday’s Fx Pending order was triggered and SL hit .
Fx Pending order : BUY LIMIT @ 1.2252 SL@ 1.2212; TP@ 1.2312
Please use correct risk and money management in line with your account size and draw down plan. These are not recommendations, you must carry out your own due diligence.
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