Before the forecast and technical analysis, I would like to take a look at our latest trade ideas.
We have a long trade based on Bullish Butterfly and we have reached the first target @ 1.40800.
And Long Trade based on Bullish CwH to add long for ISHS pattern.
Now, let us take a look at the fundamentals:
NFP report was highly disappointing. However, I do not think that would make a too much negative effect on US Dollar. Subsequently, the US unemployment rate also dwelled at the unchanged level of 4.1% instead of falling lower to 4.0% as expected by the market.
The weak UK PMIs did not help Cable to fall below 1.39600. Market players are expecting further rate hikes from BoE as we mentioned in our previous forecast.
The main topic haunting the financial markets was the ongoing trade wars between the US and China.
The main trend is still bullish.
On the Daily Chart, the price is above EMA 50,100 and 200.
1.39600 is EMA 50 support of the Daily Chart. That’s why we pay attention to this level. The midterm bullish trend will continue as long as the price holds above 1.39600.
1.42500 as EMA 100 of the weekly chart, acts as a resistance. We can see the price is “locked ” between 1.39600 – 1.42500 – almost 300 pips –
On the H4 Chart: – To see the intraday levels –