UK inflation report: Tuesday, 8:30. The crash of the pound that was one of the results of Brexit is making consumer prices dearer. Britain stands out with its higher inflation among developed economies. With wage growth running below the rise in prices, standards of living are falling. The Bank of England has a lively debate about whether to raise rates or not. Headline CPI increased by 2.9% y/y and is expected to be seen again.
GBP
UK inflation report
- EURUSD
As could be seen on the chart above that the pair is traded right below a strong resistance level that could be found around the level of 1.1540 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.1450 followed by 1.1400. On the other hand, breaching the level of 1.1540 would open the door for further upward movements during the week that the pair may reach the level of 1.1650.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.1610 ▪ 1.1540 ▪ |
▪ 1.1300 ▪-1.1250 ▪ 1.1200 |
We remain bearish as long as the pair is traded below the level of 1.1540 |
- GBPUSD
As could be seen on the chart above that the pair is traded right below a strong resistance level that could be found around 1.3125 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.3000 followed by 1.2900 during the week. On the other hand, breaching the level of 1.3125 will open the door for further upward movement during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.3125 ▪ 1.3200 ▪ 1.3300 |
▪ 1.2900 ▪ 1.2800 ▪ — |
We remain bearish as long as the pair is traded below the level of 1.3125 |
- GOLD
The pair is traded right below a strong resistance level that could be found around the level of 1240. So we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1220 during the week. On the other hand, breaching the level of 1240 can open the door for further upward movements during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1270 ▪ 1265 ▪ 1240 |
▪ 1220 ▪ 1210 ▪ 1200 |
We remain bearish as long as the pair is traded below the level of 1240 |
- AUDUSD
The pair managed to break through the level of 0.7820 (which is a strong resistance level) so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 0.8000 during the week. On the other hand, breaching the level of 0.7820 would open the door for the pair to reach the level of 0.7700.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.7820 ▪ 0.8000 ▪ |
▪ 0.7700 ▪ 0.7600 ▪ 0.7500 |
We remain bullish as long as the pair is traded above the level of 0.7820. |
- GBPJPY
As could be seen on the chart above that the pair is traded right below a strong resistance level that could be found around the level of 148. So, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 147 followed by 146 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 148 ▪ 147.95 ▪ |
▪ 145 ▪ 144 ▪ 143 |
We remain bearish as long as the pair is traded below the level of 148. |
