Representatives of the EU countries and the UK government have agreed to extend Brexit until October 31 at an extraordinary EU leaders summit. The pressure on the British pound decreased. From a technical point of view, we can see some bullish signals. The currency pair is currently testing the 61.8% Fibo level. It is remarkable, that bearish candles on the bounces from the level of 61.8% are becoming weaker and weaker. This indicates that the currency pair may grow above 61.8% very soon. In this case, GBPUSD will break the bullish triangle. The profit target is seen at 1.3220, the 38.2% Fibo level. MACD indicator rose above the zero mark. Cayman indicator is in the neutral zone.
The USDJPY pair started the week with a small gap down. Last week, the bulls have almost reached resistance 112,12. Before the market closed, the “shooting star”, a strong bearish signal, had formed. And today, one more doji candle has appeared on the 4-hour chart at the opening of the Asian session. There is a slight divergence in the MACD indicator. On the other hand, the Cayman is at historic lows. The indicator shows only 13.33% of buyers, which means that the currency pair is oversold. First, we expect a correction to the level of 111.60 (23.6% Fibo). After that, we can start buying from this level.
On Monday, no significant economic news is not expected.
On Tuesday, we recommend paying attention to the employment statistics from the UK. In the afternoon, the US Industrial and Manufacturing Production data will be also published.
On Wednesday, we expect the UK and Eurozone Inflation Rate to be released.
The US and Canada will publish their Export and Import metrics too.
Good Friday will be observed on April, 19 this year. It’s a national holiday in many countries, including the United States, Australia, and the United Kingdom. So, please keep in mind that some instruments will not be available for trading this coming Friday.
Our targets for:
GBPUSD – 1.3220
USDJPY – 111.60