The best performer was the British pound, which climbed towards 1.4350 and provided sterling bulls a good profit. As already assumed in yesterday's analysis, the odds seemed to be in favor of an upswing, although there were no fundamental drivers supporting the bullish bias. Speculations about higher inflation could have been a possible reason for the pound's recent price rice. And indeed: U.K. Consumer Price Indices came in higher than expected. Nonetheless, traders should bear in mind that the outlook for the pound remains fragile as long as uncertainty dominates the currency ahead of the EU referendum in June. On the bottom side we expect the 1.4175 level to lend a short-term support for the currency pair.
All quiet in the EUR/USD. This has been the motto for euro traders, as the euro's sideways movement provides nothing but losses. The euro broke above its current resistance at 1.1450, but the rise was only short-lived and the euro fell back into its recent trading range. Amidst the sideways trend, breakout traders searched in vain for any profitable trading chances and struggled with false breakouts. However, we know that a sideways trend with fluctuations confined to a narrow band usually does not last very long. We are therefore looking for breakouts in the near-term. Nonetheless, the sideways trend is unbroken as long as the euro trades between 1.1450 and 1.13.
Here are our daily signal alerts:
EUR/USD
Long at 1.1420 SL 25 TP 20, 45
Short at 1.1359 SL 25 TP 20, 40
GBP/USD
Long at 1.4260 SL 25 TP 20, 60
Short at 1.4170 SL 25 TP 20, 50
We wish you good trades and many pips!
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