Technical analysis of GBP/USD for February 05, 2019

Technical analysis of GBP/USD for February 05, 2019

2019-02-05

Overview: The GBP/USD pair will continue rising from the level of 1.3048 today. So, the support is found at the level of 1.3048, which represents the pivot point in the H1 time frame. Since the trend is above the pivoti level, the market is still in an uptrend. Therefore, the GBP/USD pair is continuing with a bullish trend from the new support of 1.3048. The current price is set at the level of 1.3080. Equally important, the price is in a bullish channel. According to the previous events, we expect the GBP/USD pair to move between 1.3048 and 1.3139. Therefore, strong support will be formed at the level of 1.3048 providing a clear signal to buy with the targets seen at 1.3139. If the trend breaks the support at 1.3139 (first resistance), the pair will move upwards continuing the development of the bullish trend to the level 1.3222 in order to test the daily resistance 2. In the same time frame, resistance is seen at the levels of 1.3048 and 1.3222. The stop loss should always be taken into account for that it will be reasonable to set your stop loss at the level of 1.2959.

Fundamental Analysis of USD/JPY for February 5, 2019

2019-02-05

USD/JPY has been quite impulsive amid the recent bullish momentum. The price is holding at the edge of 110.00-50 resistance area with a daily close. Ahead of macroeconomic data from the US this week, JPY has been quite solid amid the recently published economic reports while the Bank of Japan is busy with the wage recalculation process.

Recently Bank of Japan's Governor Kuroda today stated that there is no change in the central bank's assessing the economy after finding errors which forced the labor ministry to revise monthly wages data. The labor ministry is expected to recalculate data by this week that is expected to dent policymakers' hopes for sustained inflation. Recently BoJ Monetary Base report was published with a slight decrease to 4.7% from the previous value of 4.8% which was expected to be worse, decreasing towards 4.6%.

On the USD side, the Federal Reserve is currently quite patient to take decisions on interest rates. Citing Cleveland FED President Mester, it is the best approach in the current situation. Nevertheless, to boost the US economic growth the interest rates remain appropriate to current GDP rates, so further rate hikes are needed. Today US ISM Non-Manufacturing PMI report is going to be published which is expected to decrease to 57.2 from the previous value of 57.6 and later President Donald Trump is also going to speak about the US-Mexico deal which is expected to contribute to USD gains.

Meanwhile, JPY is quite strong in comparison to USD. Upcoming economic report and events in the US could make a bearish impact on USD. Thus, JPY may hold the upper hand in the short term.

Now let us look at the technical view. The price is currently residing at the edge of 110.00 area while developing Bearish Divergence in the MACD Histogram. As the price remains below 110.50 area with a daily close, there are certain chances for the bears to push the price lower towards 108.50 support area in the coming days before the price starts to climb higher in the future.

SUPPORT: 108.50

RESISTANCE: 110.00-50

BIAS: BEARISH

MOMENTUM: VOLATILE

Analysis of Gold for February 05, 2019

2019-02-05

Sellers are in control on Gold. We found a confirmed head and shoulders pattern, which is another strong sign of weakness. The price did small upward correction and fund support at $1.308.00 but in my opinion only temporary. The key short-term resistance remains at $1.323.00. As long as this resistance is holding, you should watch for selling opportunities. The breakout of short-term support at the price of $1.308.00 would confirm a potential test of $1.297.75.

R1: $1.324.00

R2: $1.329.70

R3: $1.335.60

Pivot: $1.318.20

S1: $1.313.75

S2: $1.307.60

S3: $1.302.56.

Trading recommendation: We are still short on Gold from $1.311.00 and protective stop at $1.322.00. The first objective target is set at the price of $1.297.75.

GBP/USD analysis for February 05, 2019

2019-02-05

The GBP/USD pair made a successful change in trend behavior from bullish to bearish. The key resistance at 1.3215 held successfully and the sellers started the distribution process. Short-term trend remains bearish and we are still holding our short position.

Blue lines - bearish channel

GBP/USD is in a bearish trend making lower highs and lower lows. Price is below the Ichimoku cloud and both the tenkan- and kijun-sen indicators plus below the pivot level (1.3054) and yesterday's low (1.3028). As long as we trade below the Ichimoku cloud on the H1 time – frame, the trend remains bearish.

Trading recommendation: We are still short on GBP/USD from 1.3052 but we secured our position on breakeven (SL moved to entry level 1.3052). The downward target is set at the price of 1.2965.