Do the pair make a bearish divergence at the resistance of the broadening chart pattern, a selling opportunity for cable, Will the GBP/Usd pair rally down as speculated or break out? Well, let’s find out more through the technical analysis. Read through for more.
Economic News on USD
The ranking of a composite indicator is based on surveyed homes.
review of homes which ask testifiers to rate the relative ranking of current and coming economic conditions including labor accessibility, business conditions, and overall economic situation.
Financial confidence is a leading index of consumer spending, which accounts for a majority of overall economic conditioning.
It’s released monthly, on the last Tuesday of the current month, if ‘Actual’ is higher than ‘Forecast’ is good for the currency.
GBP/USD
| Currency | Forecast | Previous |
| USD | 108.4 | 109.3 |
Ranking of a composite indicator based on surveyed manufacturers in Richmond.
Results above 0 indicate enriching conditions, below indicate worsening conditions. Tends to have a muted impact because there are ahead regional indexes related to manufacturing conditions.
Check of about 55 manufacturers in the Richmond area which asks testifiers to rate the relative ranking of business conditions including shipments, new orders, and employment.
This is released monthly, on the fourth Tuesday of the current month, and if’ Actual’ is higher than ‘Forecast’ is also good for the currency.
| Currency | Forecast | Previous |
| USD | 4 | -3 |
Also known as Richmond Fed Index, Manufacturing Activity Index, and Composite Manufacturing Index.
Pair Observation
Firstly from the daily chart a broadening chart pattern is spotted diagrammed as two diverging trend lines, one rising ‘Resistance’ and one falling ‘Support’, this occurs as a result of that disagreement among investors ‘Buyers(Bulls)’ and ‘Sellers(Bears)’.
GBP/USD
Secondly, it is clear and concise that a bearish divergence formed on the resistance zone of the broadening chart pattern which in turn is considered to be a good entry opportunity for a short ‘Sell’ bias, on the chart Higher highs(HH) and indicator Lower highs(LH).
Technical Indicator:
GBP/USD
The stochastic indicator from the daily chart is heading off the overbought level, a key confirmation that sellers art setting in with orders and buyers pulling out. Paying attention to the Economic news update and market structure of GBP/JPY is a necessity as they are positively correlated.
Conclusion
With the technical indicator which signals buyers’ exhaustion and the additional confirmation of the bearish divergence on the resistance of the broadening chart pattern, It is an opportunity for a sell in consideration of the Outcome of the economic news which may serve as a catalyst is positive.
USD/CHF
Pair on a Bull run, pair on a rising channel retraces/ pull back on the support trend-line tests and bounce off the key support level 0.91500.
USD/CHF
Economic News on CHF
The rank of a composite indicator is based on 219 economic indexes.
This indicator is designed to forecast the direction of the economy over the coming 6 months. Source changed series computation formula as of April 2006 and April 2014.
Concerted reading of 219 economic indexes related to banking confidence, product, new orders, consumer confidence, exchange rate, money supply, interest rate spreads, stock call prices, and housing.
Released monthly around the end of the current month, if ‘Actual result’ is higher than ‘Forecast’ good for the currency.
| Currency | Forecast | Previous |
| CHF | 108.6 | 110.6 |
KOF Leading Indicators, Konjunkturbarometer.
Pair Observation
Firstly From the start of the first quarter(Q1) market has been on a rising/Upward channel diagrammed as two sloppy upward trend lines, one at the resistance ‘Higher highs’ and the other supporting ‘Higher lows’.
USD/CHF
Secondly starting from the third quarter(Q3) market couldn’t break the middle resistance between the main support and resistance channel which resulted in a mini-rising channel where it made higher highs and higher lows within the main support and the middle resistance of the main channel.
Technical Indicator:
USD/CHF
The stochastic indicator is currently heading off the oversold level which indicates that buyers ‘bulls’ are taking over to drive the pair back to the top.
It’s a necessity to pay attention to the market structure and economic news on USD-based pairs for they will be an insight into USD/CHF behavior.
Conclusion
The pair tested the key level 0.91500 which is the support of the rising channel then bounced off, with the signal from the indicator and price action pair will rally back up.
It’s a call for buy ‘Long position’, pair may break the middle resistance if the Economic new release plays out well.
“Chinedu is a Trader and content writer, With a passion for educating others about the financial markets. Through his writing, he works tirelessly to share insights and knowledge gained from years of experience trading in the financial market. He is dedicated to helping others achieve success in their journey by providing valuable information on what works and what doesn’t.
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