MARKET UPDATES :
- Forex – Yen dips near two-week lows after Japan’s verbal warnings
- Forex -Dollar moves higher against yen on intervention talk
- Forex-Australia, NZ dlrs near multi-week lows on weak commodities, China
The pair is extending its sideline theme around the 1.1400 handle for the time being amidst lack of of relevant drivers and scarce volatility. In the meantime, the upside in the greenback seems to have lost some vigour during the European morning, although it remains in the upper end of the recent range when tracked by the US Dollar Index. In the data space, German trade surplus has surpassed estimates in March, while Industrial Production has contracted more than initially expected during the same period. Across the pond, US NFIB Business Optimism index is due followed by the API’s weekly report on US crude stockpiles.
GBP/USD is currently trading with a bearish bias. Yesterday, the pair traded short but could not close below 1.4406. Since the intraday stochastic is trading below its neutrality level of 50 and is headed towards 25. We expect the cable to continue to the lower side but should not go below 1.4106. However, as long as the price keeps being rejected at 1.44061 the price may rally to the upper side but should not go above 1.46637. This pair should be traded alongside AUD/JPY, GBP/CHF, EUR/USD, and NZD/USD. These pairs have a strong positive correlation of up to +0.98 and will likely move in a similar direction during this intraday. Only buy or sell the cable if the other pairs are giving the same signal.
- BUY GBP/USD AROUND 1.4380 TARGET 1.4420 1.4480 SL 1.4350
- SELL GBP/USD AROUND 1.4510-1.4520 TARGET 1.4460 1.4400 SL 1.4540