Wave Analysis by InstaForex

Technical analysis of GBP/USD for 14/06/2019:



Technical Market Overview:
After two Pin Bar like candlestick formation around the upper consolidation boundary, the GBP/USD pair keeps trading close to the support zone located between the levels of 1.2652 - 1.2668. The momentum is barely holding the neutral fifty level and it looks like is about to go lower as well. The stochastic is in the middle of the range now, so all sum up there is no direct signal regarding the future price move now, but the support zone is tempting to be violated. In this scenario, the next target for bears is seen at level 1.2605.

Weekly Pivot Points:
WR3 - 1.2954
WR2 - 1.2856
WR1 - 1.2800
Weekly Pivot Point: 1.2708
WS1 - 1.2658
WS2 - 1.2549
WS3 - 1.1502

Trading Recommendations:
The best strategy in the current market conditions is to trade in the direction of the main trend, which is still down. All the local bounces and correction should be treated as another opportunity to open the sell orders for a better price. Please notice, the larger time frame trend is down and there are no signs of any trend reversal.

Analysis are provided byInstaForex.

USD/CAD approaching resistance, potential reversal!



Price is approaching its resistance where we expect to see a reversal.
Entry : 1.3437
Why it's good : 61.8% Fibonacci retracement, 100% Fibonacci extension, horizontal pullback resistance
Stop Loss : 1.3499
Why it's good : 78.6% Fibonacci retracement
Take Profit : 1.3364
Why it's good : Horizontal pullback support, 38.2% Fibonacci retracement

Analysis are provided byInstaForex.

EUR/GBP near resistance, a drop is possible!



EURGBP is near resistance, a drop to 1st support is possible
Entry: 0.8982
Why it's good : 100% Fibonacci extension, 78.6% Fibonacci retracement, horizontal swing high resistance
Stop Loss : 0.9063
Why it's good :horizontal swing high resistance
Take Profit : 0.8791
Why it's good: 61.8% Fibonacci extension, horizontal overlap support, 61.8% Fibonacci retracement

Analysis are provided byInstaForex.

GBP/USD near resistance, a drop is possible!



GBPUSD is near resistance, a drop to 1st support is possible
Entry: 1.2564
Why it's good : 61.8% Fibonacci extension, 23.6% Fibonacci retracement, horizontal pullback resistance
Stop Loss : 1.2660
Why it's good :horizontal pullback resistance, 61.8% Fibonacci retracement, 61.8% Fibonacci extension
Take Profit : 1.2462
Why it's good: 100% Fibonacci extension

Analysis are provided byInstaForex.

USD/JPY approaching support, possible bounce!



Price is approaching its support where it could potentially bounce up to its resistance at 108.161
Entry : 107.492
Why it's good : 61.8% Fibonacci extension
Take Profit : 108.161
Why it's good : 50% Fibonacci retracement, horizontal pullback resistance, 61.8% Fibonacci extension

Analysis are provided byInstaForex.

GBPUSD: The pound is growing after the Bank of England's decision not to change the monetary policy

The British pound continued its growth against the US dollar, completely ignoring the weak report on retail sales. The demand for the pound has been observed since the beginning of the week, when it became clear that the monetary policies of the Bank of England and the US Federal Reserve may begin to diverge in different directions. In other words, the central bank of England will not lower interest rates, while the Fed intends to do this, which, although indirectly, was mentioned at Fed Chairman Jerome Powell's press conference yesterday.

As I noted above, retail sales in the UK fell in May of this year, and one of the main reasons are adverse weather conditions, which negatively affected the demand for summer wardrobe items. This once again confirms the fact that the UK economy is unlikely to show good growth rates in the 2nd quarter of this year and, at best, will only keep them.

According to the UK National Bureau of Statistics, retail sales in the UK fell by 0.5% in May compared with April. Fall is observed for the second month in a row. Between March and May, UK retail sales rose by only 1.6%, after rising 1.7% between February and April.

Economists had expected a similar decline in retail sales, which also kept pressure on the British pound before the publication of the Bank of England report on interest rates.

According to the data, the Bank of England left the key interest rate at the level of 0.75%, and the decision to keep the key rate at the same level was made at a ratio of 9 to 0.



The central bank noted that downside risks for GDP growth have increased, and therefore GDP growth will remain unchanged in the 2nd quarter. The regulator also expects that this year inflation will be below the target level of 2%, which will "slow down" with a further increase in interest rates in the context of growing uncertainty with Brexit.

Let me remind you that today Boris Johnson, who is the most likely successor of Theresa May as prime minister, moved ahead in the fourth round of voting with 157 votes. Johnson is a hard advocate of Brexit, which in the future could create serious problems for the economy.

The Bank of England expects a limited and gradual increase in interest rates in the event of a smooth Brexit.

As for the technical picture of the GBPUSD pair, growth was restrained by a large resistance level around 1.2730, and currently there is some downward correction in the support area of 1.2640, which will make it possible for large buyers to build the lower boundary of the new upward channel capable of continuing the current trend. The main weekly goal of the bulls will be a high in the area of 1.2760.

Analysis are provided byInstaForex.

EUR/USD approaching resistance, potential drop!



EURUSD is approaching resistance where we might see a drop in price.
Entry: 1.1448
Why it's good : Horizontal swing high resistance, 100% Fibonacci extension, 23.6% Fibonacci retracement
Stop Loss : 1.1493
Why it's good : Horizontal swing high resistance
Take Profit : 1.1346
Why it's good: 61.8% Fibonacci extension, 23.6% Fibonacci retracement, Horizontal pullback support

Analysis are provided byInstaForex.

Forecast for GBP/USD on June 25, 2019



GBP/USD
Yesterday, the pound solved the main task for the possibility of further growth - it consolidated above the line of the price channel on the daily chart. The balance line was on top of a strong resistance. The daily Marlin oscillator signal line lies at the horizon, which makes it possible for the pound to continue its slow growth below the balance line and reach the MACD line (1.2832), presumably at the point where both indicator lines coincide. From this point, a reversal or correction is likely.

There is a weak convergence on the four-hour chart on the Marlin oscillator, but nevertheless it is closer in form to consolidation in the growth zone, which may soon continue to increase the indicator and price.

A signal for a reversal will be the departure of the price below the price channel line on the daily chart and below the MACD line (1.2690) at the four-hour price.

Analysis are provided byInstaForex.

EUR/GBP approaching resistance, potential drop!



EURGBP is approaching resistance where we might see a drop in price. Entry: 0.8981
Why it's good : Horizontal swing high resistance, 78.6% Fibonacci retracement
Stop Loss : 0.9055
Why it's good : Horizontal swing high resistance

Analysis are provided byInstaForex.

Technical analysis of Gold for June 27

Gold price has pulled back towards $1,400 as expected and noted in our previous posts. The risk reward ratio did not favor bulls and as the RSI was giving bearish divergence signs, we said that we prefer to take profits and stay neutral when price was above $1,430.



Blue lines - bearish divergence
Green line - support trend line

Gold price has pulled back from $1,439 towards $1,400. The bearish divergence warnings by the RSI have been fulfilled. Price has made the minimum required pull back. Price could continue lower towards $1,380-90 area before resuming its up trend. Short-term support is found at $1,410 and resistance at $1.425. Medium-term trend remains bullish. Gold bears will need to break below $1,270-$1,300 area in order to cancel the importance of this bullish breakout.

Analysis are provided byInstaForex.