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GBP/USD Technical Analysis Forecast For 21 May 2015

Analysis and Recommendations (GBP/USD Analysis Forecast 21 May):

The GBP/USD dipped 8 points after the release of Bank of England MPC minutes and the stronger US dollar. The pound is trading at 1.5506 after the lackluster inflation print on Tuesday.  Minutes from May’s Bank of England policy meeting were in focus in European trading hours. Last week’s quarterly Inflation Report revealed that the central bank is assuming its first post-crisis interest rate hike will occur around mid-2016. That is significantly later than what is being implied by priced-in market expectations. Indeed, futures market pricing implies lift-off in the first quarter of next year. If the Minutes document shines light on this disparity, investors may well have to adjusted expectations outward, sending the GBP lower.

The spotlight shifts to minutes from April’s FOMC sit-down. Janet Yellen and company have argued that weakness seen through the winter is transitory. Indeed, there seem to be striking parallels between the first-quarter slumps in 2014 and 2015. Last year, the markets bet on a slowdown or pause of the QE “taper” after the winter downturn only to be met with steadfast resolve on from the FOMC. A parallel result this time would imply a rate hike around mid-year, not late in the fourth quarter as is now predicted.

gbp usd technical analysis forecast 21 May

GBPUSD has fallen as EUR/USD for two days. This fall has been valued as a reaction of sellers for the up trend to realize profits until the bottom level of the trend cahnnel which is 1.5450 – 1.5390. After this fall, GBP/USD stayed over this level and had a small rise. This level is so critical that, traders should watch the movements around 1.5450.

First we have to get if bearish reactions are over…

To answer that question we got to analyse to areas. First one is the bottom level of short term up trend which is 1.5450. To continue the up trend, GBP/USD should not break this level below. The second one is, GBP/USD has to get over 1.5555 than 1.5630 barrier to continue the trend. As long as this two issues are solved, BULLS will take over the market. arz etmektedir.

So 1.5450 – 1.5555 – 1.5630 levels should be watched carefully. 

GBP/USD Support And Resistance Levels For 21 May 2015

Pivot : 1.5555

Support : 1.5450-1.5390-1.5305

Resistance : 1.5555-1.5630-1.5705

ForexTraq provides in-depth analysis for each currency and commodity we review in forex trading. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information for GBP/USD in our weekly reports.

Today’s economic releases actual vs. forecast:

Cur. Event Actual Forecast Previous
  AUD RBA Assist Gov Lowe Speaks
  JPY GDP (YoY) (Q1) 2.4% 1.5% 1.1%
  JPY GDP (QoQ) (Q1) 0.6% 0.4% 0.3%
  AUD Westpac Consumer Sentiment (May) 6.4% -3.2%
  EUR German PPI (MoM) (Apr) 0.1% 0.2% 0.1%
  GBP BoE MPC vote cut (May) 0 0 0
  GBP BoE MPC vote hike (May) 0 0 0
  GBP BoE MPC vote unchanged (May) 9 9 9
  GBP BoE MPC Meeting Minutes

 gbpusd wed

Upcoming Economic Events that you should be monitoring for GBP/USD in forex trading:

Thursday, May 21, 2015

Cur. Event Actual Forecast Previous
  CNY HSBC Manufacturing PMI 49.3 48.9
  EUR German Manufacturing PMI 52.3 52.1
  GBP Retail Sales (MoM) (Apr) 0.4% -0.5%
  USD Existing Home Sales (Apr) 5.24M 5.19M
  USD Philadelphia Fed Manufacturing 8.0 7.5

Government Bond Auctions

Date Time Country

May 21 08:30 Spain Auctions Bonos

May 21 09:03 Sweden Holds bond exchange auction

May 21 09:10 France Auctions BTANs

May 21 09:30 UK Auctions 4.75% 2030 Conventional Gilt

May 21 10:10 France Auctions

May 21 15:30 Italy Announces details of CTZ/BTPei on 26 May

May 21 15:00 US Announces details of 2-year FRN on 27 May, plus 2/5/7 year

May 21 17:00 US Auctions 10-year TIPs

May 22 09:03 Sweden Holds bond exchange auction

May 22 10:00 Norway Details bond auction on 27 May

 

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