UK Inflation data: UK consumer prices edged up 2.3% in February compared to 1.8% in January, exceeding market forecast. The rise was attributed to rising fuel and food prices. This was the highest reading since September 2013. Economists had expected a reading of 2.1%. The increase has pushed the rate above the Bank of England’s 2% target. The BoE expects inflation will soar to 2.8% in 2018, as the Brexit vote caused the fall in the pound against the dollar. UK inflation is expected to reach2.2% this time.
GBP
UK Inflation data
- EURUSD
As could be seen on the chart that the pair needs to confirm the breakout of the downside of the ascending channel shown on the chart above. Then we can go short targeting the level of 0.0500 during the week. On the other hand, if the pair goes up again to be traded above the broken downside of the pattern and to be exact, above the level of 1.0640, we may go long targeting the level of 1.0700 during the day.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.0800 ▪-1.0900 ▪ 1.0950 |
▪ 1.0500 ▪-1.0600 ▪ — |
Waiting for the pair to confirm its next movement. |
- GBPUSD
As could be seen on the chart that the pair is traded in a very narrow range that tends to be negative. We would also like to mention that the pair is facing a strong support level around 1.2350 so in case that this level is broken, we may go short targeting the level of 1.2300 during the day. Otherwise, we remain bullish that it may go up again targeting the level of 1.2500 during the day.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.2500 ▪ 1.2600 ▪ — |
▪ 1.2350 ▪ 1.2300 ▪ 1.2000 |
We remain bullish as long as the pair is traded above the level of 1.2350 |
- GOLD
The Gold again is traded below the level of 1260 so this means that we are facing a strong resistance level. So, we believe that as long as the Gold is traded below the level of 1260 – 1270 we may go short targeting the uptrend line shown on the chart above. On the other hand, if the level of 1270 is broken, we may go long targeting the level of 1300.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1260 ▪ 1270 ▪ — |
▪ 1220 ▪ 1190 ▪ 1180 |
We remain bearish as long as the pair is traded below the level of 1270. |
- AUDUSD
A harmonic pattern could be seen on the chart above and the pair is facing a strong support level around 0.7455. In case the level of 0.7455 is broken, then the pair may continue going down to reach the level of 0.7415 during the day. Otherwise, we are bullish.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.7720 ▪ 0.7800 ▪– |
▪ 0.7410 ▪ 0.7400 ▪ — |
We remain bearish as long as the pair is traded below the level of 0.7600 |
- GBPJPY
The pair managed to form a bullish harmonic patter that its (PRZ) could be found around 137.10 – 137. So, this suggests more downward movement during the day that it may reach the level of 137.10 then a pullback is expected to the level of 138.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 142 ▪ 142.70 ▪ — |
▪ 137 ▪ — ▪ — |
We remain bullish as long as the pair is traded below the level of 137 |
