Tuesday 14 March GBPUSD Day Close Analysis, After the unexpected announcement by the Scottish SNP Leader of a possible second referendum, where does this leave the United Kingdom? UK PM Theresa May now has the key to officially announce the divorce proceedings with European Union in writing. How will markets react? Are you short GBP?
AtoZForex – The Dollar index after last Thursday’s and Friday’s dropped has recovered and closed positively for two consecutive days. Will we see further downside for the USD this week? Aside from the FOMC meeting on Wednesday , we have the BoJ, BoE and SNP meetings. How will the markets react?
Tuesday 14 March GBPUSD Day Close Analysis
Both PM Theresa May and Scotland’s First Minister Nicola Sturgeon exchange continues. The market turns its focus on the much awaited FED rate rise, expected to be 25bps. However, suggest traders to read this article regarding the FED rate hike by Yagub Rahimov. Also, expect GBP to be impacted by the Average Earnings Index and Number of people claiming unemployment related benefits. If GBP is impacted negatively, we could see some recovery after the USA CPI and Core CPI data to show a drop from the previous month. Additionally, we have the US Crude Oil inventories data release, which is expected to drop from previous week.
14 MARCH GBPUSD Day Close Analysis
At the end of the day, the Dollar strength strengthened ahead of the FOMC meeting. With rate rise expected by most, traders should be ready to reverse positions if there is no indication of one. GBP closed below Monday close with no clear trading direction.
On the Daily chart both the daily 20sma and 100sma are sloping down with the 20sma below the 100sma. Price is below the two moving averages.
Moving Averages – Both the 20sma and 100sma are sloping down with the 20sma below the 100sma at the time of writing this article.
MACD –MACD histogram and signal line are below the neutral line
RSI – RSI is below the 50 level and approaching it.
Key levels – Price fell earlier in the day to a low 1.21089 before bouncing and recovering some of its lost position. The price touched the key support turn resistance level at 1.2169 and slid back to close the day at 1.2152. Price could retest the 1.2169 level once again before continuing to the downside. Bias is on the bearish side, with possibility of a clear break below the 1.2140 level after a retest of the 1.2170-75 level.
Fx Pending order: SELL LIMIT @ 1.2169 SL@ 1.2215; TP@ 1.2101
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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