The British pound continued increasing yesterday from the low of October – 1.2920 level. Mixed economic data had been published in UK on Wednesday morning, which had low and short-term influence on the British pound. British pound fell for 30 points against the US dollar, however the pair finished day with +49 points rising to 1.3188 level.
There is strong signal to open long positions on the Daily chart. Bullish engulfing was confirmed at 4th October after reaching 1.2920 support level. So, our idea is buying the British pound against dollar with Take Profit at 1.33 level.
Today we expect Bank of England governor Carney speech at 9:00am GMT and consumer price index data in the USA at 12:30am GMT, which may highly affect on the pair’s movements.
We bought EURUSD at 1.1517 after bullish reversal had been confirmed by the end of the yesterday trading session. We recommend setting Stop Loss at the breakeven point.
Global cues highly affected on Asian market, especially on Chinese and Japanese stock market. The people’s bank of China announced a 100 basis point cut in the reserve requirement ratio last weekend However, traders has took it that the central bank is worried about prospects of a deeper recession in the coming quarters.
That is why Asian indices like Nikkei, Korean and Chinese composite indices opened with a huge gap today. While we are closely watching the news, we recommend taking advantage of the situation and opening a long position on the Japanese index at current price in favor of growth of bullish correction.
Our targets for,
GBPUSD – is buying to 1.33 level
Nikkei – is buying 22600 level