UK Mortgage Approvals are expected to fall for the second consecutive month in June while Net Consumer Credit growth slows from the previous month over the same period.

UK Mortgage Approvals are expected to fall for the second consecutive month in June while Net Consumer Credit growth slows from the previous month over the same period. The figures will reinforce dovish comments from BOE policymakers delivered in testimony to the Parliament’s Treasury Committee, where governor Mervyn King downplayed the stronger-than-expected second quarter GDP result to stress lingering uncertainty about the recovery in general and inflation in particular, signaling monetary policy is firmly stuck in accommodative territory for the time being.

Trading Tactics

A clear uptrend could be an opportunity to Buy GBP/USD.

The buying point is at 1.5627; Pivot point highest level is the take profit at 1.5695;
Pivot point is the stop loss at 1.5590

The selling point is at 1.5570; Fibonacci 38.2% is the take profit at 1.5450;
Pivot point is the stop loss at 1.5650

Technical: Sterling forms a new high and may continue the minor uptrend. A move back higher could set up a test of 1.5695

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line upwards; Momentum and RSI (Relative Strength Index) are in an uptrend; stochastic oscillator gives a neutral signal.

*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.

GBP/USD (Hourly Chart)

The Pound remains trading higher, supported by improved market confidence, and moving at 3-month highs above 1.5470, with room for further appreciation, according to technical analyst at Commerzbank.

The Pound remains trading higher, supported by improved market confidence, and moving at 3-month highs above 1.5470, with room for further appreciation, according to technical analyst at Commerzbank. The Sterling is biased to the upside, trading on an uptrend channel from May lows, targeting 1.5525/60 area, says Jones: "Short to medium term, the market has recently severed its 1.5310 down channel.

Trading Tactics

A clear uptrend could be an opportunity to Buy GBP/USD.

The buying point is at 1.5467; Pivot point is the take profit at 1.5565;
Fibonacci 23.6% is the stop loss at 1.5400

The selling point is at 1.5380; Fibonacci 61.8% is the take profit at 1.5270;
Pivot point is the stop loss at 1.5495

Technical: Sterling breaks the previous resistance level and forms a new support on moving averages line. A move back higher could set up a test of 1.5410

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line with a higher histogram; Momentum and RSI (Relative Strength Index) are in an uptrend; stochastic oscillator crosses %D line in oversold area.

*Analysis is for information purposes only and does not constitute advice in any form. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.

GBP/USD (Hourly Chart)

The Euro and the British Pound consolidated NY-session losses in overnight trade, with the single currency tracking sideways in a narrow range above 1.2750 while the UK unit oscillated within 30 pips above 1.5160.

The Euro and the British Pound consolidated NY-session losses in overnight trade, with the single currency tracking sideways in a narrow range above 1.2750 while the UK unit oscillated within 30 pips above 1.5160. Preliminary German Purchasing Manager Index figures are set to show that growth in the manufacturing and service sectors deteriorated to the slowest in four months. A composite Euro Zone Purchasing Manager Index reading is expected to decline for the third consecutive month to print at the lowest since February.

Trading Tactics

A clear downtrend could be an opportunity to sell EUR/USD.

A buying point is at 1.2860; Pivot point is the take profit at 1.2970; Fibonacci 50% is the stop loss at 1.2770

A selling point is at 1.2818; Pivot point is the take profit at 1.2635; Pivot point is the stop loss at 1.2875

Technical: Euro breaks previous support level and continues the minor downtrend. A move back lower could set up a test of 1.2635

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice histogram MACD is in a bearish direction; RSI (Relative Strength Index) and Momentum are in an uptrend; stochastic oscillator gives a bullish correction signal.

*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.

EUR/USD (Hourly Chart)

The British Pound pared the rally from earlier this week and slipped to a low of 1.5357 during the European trade as investors scaled back their appetite for risk, and the shift in market sentiment may drag the exchange lower.

The British Pound pared the rally from earlier this week and slipped to a low of 1.5357 during the European trade as investors scaled back their appetite for risk, and the shift in market sentiment may drag the exchange lower going into the end of the week as investors maintain a cautious outlook for global growth. Former Bank of England board member David Blanchflower said policy makers should be cautious when withdrawing support from the economy as the recovery “is being driven by stimulus,” and went onto say that central bank around the global should wait for clear evidence of private sector growth before normalizing policy during an interview.

Trading Tactics

A clear uptrend could be an opportunity to Buy GBP/USD.

The buying point is at 1.5321; Pivot point is the take profit at 1.5410;
Fibonacci 38.2% is the stop loss at 1.5270

The selling point is at 1.5240; Fibonacci 61.8% is the take profit at 1.5150;
Pivot point is the stop loss at 1.5340

Technical: Sterling forms a new support level on the previous resistance and may continue the uptrend. A move back higher could set up a test of 1.5410

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line upwards; Momentum and RSI (Relative Strength Index) are in an uptrend; stochastic oscillator crosses %D line upwards.

*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.

GBP/USD (Hourly Chart)

EUR/USD (1.2705)
European & US sessions forecast levels: 1.2165/1.2740
Trend Sessions: European: Neutral/Upward
US: Neutral/Downward
Market Focus: 8:30 AM Retail Sales, Retail Sales ex-auto, Export Prices ex-ag, Import Prices ex-oil, 10:00 AM Business Inventories, 2:00 PM FOMC Minutes, 5:00 AM EU HICP - Core, HICP.
Daily Strategy: The dollar drops to two months low against the euro as the risky appetite rises. The disappointed U.S. Trade Balance also support the euro rises. China top ratings agencies downgraded the US sovereign credit score. The latest news pushes the investors to back to the risky assets. The dollar may continue losses, as the trading strategy today is to buy on technical correction below 1.2670.

Forex Forecasts by FS Team

EUR/USD (1.2594)
European & US sessions forecast levels: 1.2165/1.2720
Trend Sessions: European: Neutral/Upward
US: Neutral/Downward
Market Focus: 8:30 AM Trade Balance, 2:00 PM Treasury Budget, 2:00 AM Germany Wholesale price index.
Daily Strategy: The investors back to safety as buy dollars on Monday. The health in the European Banking system is one of the reasons for the dollar gains. The global recession is on the way to back with a second wave. The both largest economy in the world the European and United States are much more vulnerable than the rest. For today is expecting mix trading and focus over the U.S. Trade Balance.

Forex Forecasts by FS Team

EUR/USD (1.2602)
European & US sessions forecast levels: 1.2165/1.2720
Trend Sessions: European: Neutral/Downward
US: Neutral/Downward
Market Focus:
Daily Strategy: The dollar start recovery since Friday that probably will continue today. The dollar loses too much in the recent few weeks, as this space will be using by the investors to buy dollars again. The trading strategy today is to open short positions. Currently the key resistance is at 1.2720 as the chances for break above are low.

Forex Forecasts by FS Team

EUR/USD (1.2653)
European & US sessions forecast levels: 1.2165/1.2685
Trend Sessions: European: Neutral
US: Neutral/Upward
Market Focus: 8:30 AM Continuing Claims, Initial Claims, 3:00 PM Consumer Credit, 2:00 AM Germany Current Account, Trade Balance, 6:00 AM Germany Industrial Production.
Daily Strategy: The positive news for Europe and the European debt crisis help to the euro to stabilize and gain significantly in the last weeks. It seems that the world may follow a second wave of recession as United States is much more vulnerable than Europe. The investors back to the euro that rises may continue today ahead the Initial Claims report in United States and some important data from Germany the European locomotive.

Forex Forecasts by FS Team

EUR/USD (1.2596)
European & US sessions forecast levels: 1.2165/1.2660
Trend Sessions: European: Neutral
US: Neutral/Upward
Market Focus: 6:00 AM Germany Factory orders.
Daily Strategy: The stabilization of the European Union finances pushes the traders to back to the euro. It seems that the pressure against the dollar rises and we can see level up of 1.30 in a short time. The dollar losses are more than a 700 pips for a month. The disappointed data in United States also support the euro to recovery. For today is expecting continue of the euro rises against the dollar.

Forex Forecasts by FS Team

EUR/USD (1.2543)
European & US sessions forecast levels: 1.2165/1.2670
Trend Sessions: European: Neutral
US: Neutral/Downward
Market Focus:
Daily Strategy: Speculations and rising concerns for the U.S. economic growth is one of the major reasons for the weak dollar. The Friday’s Non-farm payrolls report show bad news for strong cutting jobs while the Unemployment Rate fell to 9.5%. In Europe the rising debt crisis signal that the European Central Bank will keep the interest rates at the possible low level for longest time. For today is expecting mix trading with movements into both directions. The dollar may slowly recovery against the euro.

Forex Forecasts by FS Team