Greetings, dear friends!

On Wednesday, the growth of the dollar was unstable. Jerome Powell’s comment on interest rates cut has made its impact on the market. American currency keeps strengthening relative to the yen, but no growth is observed in pair with the euro.

On Wednesday, both speech by the head of the Bank of England and positive report on durable goods orders in the United States had no effect on the market. The dollar retreated from 3-month lows, and then its growth stalled.

Trump and Xi Jinping meeting is set for Saturday. It’s expected to bring positive results. The trade war is likely to be eased which causes the yen to drop slightly in pair with the dollar.

There are a few news that should be taken into consideration on Thursday:

  • 17:00 - consumer price index in Germany;
  • 17:30 - data on US GDP;
  • 19:00  - statistics on pending home sales in the US real estate market.

GBPJPY - rebound from the level 137.78 is expected

Here moderate growth and drop resumption from resistance at 137.78 are expected. This global imbalance was formed in mid-June and has not been tested yet.

In case this scenario works out, place stop at 138.36. We expect that the movement to the levels 137.21 and 136.05 will continue in the framework of downward move.

GBPCHF - opening long positions from the level 1.2393

For the last few days the chart is located close to semi-annual minimums and cannot break this support through. Global imbalance was formed at 1.2393. There was an attempt to break it through upwards with an impulsive movement (a candle with a long upper shadow was formed), but this is not enough to enter the market. Buying can be performed only after price rounding formation and retest of the level 1.2393 from above take place.

Place stop below the recent low - at the mark 1.2343; take profits are located at the levels 1.2444 and 1.2546.

Expecting the dollar to strengthen against the Japanese yen

On Tuesday the pair updated 6-months minimum, and a reversal pattern was formed on this movement. W-shaped construction with a global imbalance at 107.14 are observed here. Breakout was followed by level's retest on the next candle, but to enter the market we'll wait for a more "serious" price rounding to take place.

When buying is performed from 107.14, stop should be located at 106.73. Targets are located at 107.56 and 108.38. Since support segment is present, one can work with a regular volume.

GBPUSD - bearish forecast is still relevant

Buy signal for this pair was not generated on Wednesday, but the drop of the pound has slowed down. This means that correctional growth may begin on Thursday and is likely to complete at global imbalance 1.2739. At this level one can open purchase deals.

Place stop no lower than the mark 1.2787, and take profits - at the levels 1.2691 and 1.2595.

Yesterday’s signals working out:

  • GBPUSD - no entry point;
  • CADCHF, AUDCHF - first target has worked out;
  • CHFJPY - first take profit wasn't reached, a deal is in the market;
  • EURAUD - stop was executed.

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