GBP/USD Bearish pressure below post-BoE's level

During the last week the GBP/USD pair marked highest level 1.3314 but closed almost unchanged at 1.3265. BoE surprised markets with its hawkish stance along with the change in the MPC vote, having 3 of 9 votes for rate hikes. Meanwhile the latest release of Brexit drama will probably weigh on the Sterling at tomorrow’s opening.

Technically speaking the short-term outlook for the pair remains neutral to bearish. On the four hour time frame the price is developing between its moving averages with current price in line with the 50-day SMA. The latest recovery was stalled by the 100-day SMA, which shows its corrective attitude. RSI has lost directional strength around its’s mid-line. Stochastic is showing strong bearish momentum and is nearing oversold territory.  

The last week’s low on post-BoE's decision is providing first support at 1.3240 with is broken to below will increase the bearish pressure and will lead the pair towards  1.3205 – 1.3170.

USD/JPY Flat around 110.00 on weak Japanese inflation

USD/JPY is trading almost unchanged today around 110.00 handle.  Markit manufacturing PMI marked 7-month low and eased a little the US bears’ bearish pressure. Meanwhile mixed US equities underpin JPY’s safe-haven appeal and also heлped for the downward movement. But  the resurgent US bond yields finally stopped the march to the south, at least at the time of writing.

Technically speaking the short-term outlook remains neutral. On the four hour time frame the price is developing below its moving averages, but feeling comfortable around 110.00 level. RSI is looking for direction around 47 while stochastic is showing good upward momentum, located below its mid-line. 

The 110.20-110.30 area will continue to act as an immediate resistance, which if broken to above will lead the pair towards next supply figure at 110.75 before potential hike of the critical 111.00 hurdle. The downside remains supported by 109.85 but in case is breaking it to below, doors are opened for testing 109.50 intermediate support and having next bearish target around 109.00.

GBP/USD Bearish pressure ahead of BoE

The GBP/USD is trading with 0.2% down today at around 1.3150 area ahead of Bank of England's rate call. It is widely expected that the central bank will keep rates unchanged at 0.50% and the volume of asset purchasing, but the sound of the statement will rule the Sterling’s direction.

Technically speaking the short-term outlook remains neutral to bearish. On the four hour time frame the price is developing well below its bearish 20-day and 50-day SMAs and flat 100-day SMA.

RSI is looking for direction around its 40 level. Stochastic is showing strong downward slope and has entered into extreme oversold area.

In the early London session the pair hit a fresh 2018 low at 1.3145, few pips below the current market price. The bearish pressure remains high and a downward acceleration through this point will serve the 1.3000 zone as next bearish target.

AUD/USD Bears rule the trend

The AUD/USD pair tried to push higher today but bulls couldn’t advance beyond 0.7408. The Australian Westpac Leading Index showed worse than expected figures while the greenback is keeping steady levels. Technically speaking the short-term outlook remains neutral to bearish.On the four hour time frame the price is developing below its moving averages and as seen the 20-day SMA stalled the bullish aspiration. RSI is staying flat around its 30 while the stochastic is extremely bearish and is entering oversold area. Immediate support is seen at 0.7345 and if broken to below will open doors for testing 0.7250, which will offer strong long-term support line.

EUR/USD in quiet consolidation

This week the EUR/USD pair is quite shy and is not showing any spectacular movements as did last week. Honestly the pair is seen in quiet consolidation and caught within tight range between 1.1526 and 1.1600. In fact markets have nothing interesting to offer today but the greenback however keeps its multy months highs. 

Technically speaking the short-term outlook remains neutral to bearish. On the four hour time frame the price is developing below its flat moving averages. RSI has eased around its 43 level while stochastic is showing good upward strength slightly above its mid-line. 

First resistance is provided by the dynamic 20-day SMA currently being at 1.1590 and next one comes with 1.1645, the weekly high. Looking to the downside the pair yet remains vulnerable for further decline is closing below 1.1550. And if so, I expect bears to test 1.1510 which level if broke would open doors for 1.1460.

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Let me entertain you

The Draghi show dragged EUR/USD down today. The pair is trading around 1.1603, down 1.65% on the day and more than 200 pips off the highs. Mario Draghi and company delivered small changes and triggered huge volatility but unfortunately not in favor of the single currency. The monetary monsters announced their main target – to taper the bond buying in its June decision, defying expectations that the decision will wait until July. All in all, the ECB chief, known as a good dove, won over his rivals in an impressive way, resulting downfall of the euro will help him achieve higher inflation that the bank is committed to. ABBA used to sing the winner takes it all. Guess who is the loser that has to fall. 
Experts on smiles, handshakes and other less known codes of diplomatic etiquette are still trying to decipher the behaviour of both sultans of nuclear swing. Wars no more. Let’s see. 

Meanwhile the Theresa May’s compromise plan falls apart as pro-EU rebels branded it as unacceptable. It’s very dramatic, the GBP/USD is falling along with rising US bulls on robust macro data. But impossible broad and enthusiastic smiles are running all over UK, starting with Queen Elizabeth II and her brand-new daughter-in-law, Megan on their first joint official engagement. 

As you see everyday wheels are turning as Deep purple sing. Well the most interesting turning was today’s opening of the World cup in Russia. By the way I enjoyed Putin’s speech, but most of all I enjoyed another Englishman’s show. Robbie Williams knows how to entertain and gave the world the middle finger. 

Let's the games begin. That’s it.