UK inflation data: Tuesday, 9:30. British consumer prices climbed in January at the fastest pace since June 2014, due to higher global oil prices and a weaker sterling, Consumer prices edged up 1.8% compared with a year earlier, slightly below forecasts for a 1.9% annual increase. UK’s central bank expects that inflation will rise above 2.7% in a year’s time amid higher import prices induced by the Brexit decision to leave the European Union. UK CPI is expected to rise further to 2.1% this time.
GBP
UK inflation data
- EURUSD
Update: Will the level of 1.0800 remain solid? This is what we can know from today’s trading session. If the pair shows negative factors right below it, then this may generate a bearish signel. The pair is on its way to reach the level of 1.0800 during the week. It is our strong resistance level for the week so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.0650 during the week. On the other hand, breaching the level of 1.0800 opens the door for further upward movement that the pair may reach the level of 1.0850.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.0770 ▪-1.0800 ▪ 1.0850 |
▪ 1.0650 ▪-1.0600 ▪ 1.0500 |
We remain bearish as long as the pair is traded below the level of 1.0800 |
- GBPUSD
Update: The continuation of trading above the level of 1.2400 supports the GBP against the USD that it may reach the level of 1.2600 followed by 1.2700 during the week. A strong resistance level has been broken (1.2400). It turned into a support key level. So we believe that this breakout can open the door for the pair for further upward movements during the week that it can reach the level of 1.2500 followed by 1.2600.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.2500 ▪-1.2600 ▪ — |
▪ 1.2400 ▪ 1.2040 ▪ 1.2000 |
We remain bullish as long as the pair is traded above the level of 1.2400 |
- GOLD
Update: The Gold is still traded below the weekly resistance ($1245). We remain the same. The pair may continue to rise in the direction of our weekly key level that can be found at 1245 that also meets the downtrend line (that acts as a resistance level). The pair may rebound around that level but first of all we will need to find some negative factors then we can go short targeting the level of 1220. This scenario is conditioned by the continuation of trading below the downtrend line.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1260 ▪ 1250 ▪ — |
▪ 1220 ▪ 1190 ▪ 1180 |
We remain bearish as long as the pair is traded below the downtrend line |
- AUDUSD
Update: The pair is still traded below the level of 0.7830. Will the level of 0.7830 remain solid? This is our key resistance level for the week. The pair may rise during the week to reach our key level, then a pullback is expected if the pair shows some negative factors that it may reach the level of 0.7700 during the day.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.7720 ▪0.7800 ▪– |
▪ 0.7410 ▪ 0.7400 ▪ 0.7600 |
We remain bearish long as the pair is traded below the level of 0.7830 |
- GBPJPY
Update: The pair did not move to much yesterday. We are still waiting for it to reach a good place where we can enter the market. The pair is traded in a very narrow range between 142.50 (the high) to 139 (the low). No trading for now till the pair reaches one of those levels (that is where we can enter the market) Otherwise, no trading is allowed on daily biases.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 142 ▪ 142.70 ▪ — |
▪ 138.70 ▪ 138 ▪ 137 |
Waiting for the pair to reach one of the levels mentioned in the report. |
