News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
More View more
Real Time News
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/UTWxbnNz7M https://t.co/W9awqb818J
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/lucvsACxu5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/yywnE39MLU
  • The US Dollar is losing ground against ASEAN FX, with USD/SGD and USD/IDR possibly readying to extend declines. Will USD/PHP and USD/MYR follow? Find out from @ddubrovskyFX here: https://t.co/l705RWumj5 https://t.co/jBbMKYp0F5
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/YUhC9cCDpy
  • The US Dollar has spent much of October giving back September’s gains. Is there any hope for change? Get your #currencies update from @JStanleyFX here: https://t.co/3EHa6PV5yH https://t.co/PrP9J2klJk
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/UalZ8cRSXB https://t.co/wDVd2QvcjO
  • The longer-term EUR/USD outlook will hinge on Thursday’s ECB guidance; any hint of a further easing of Eurozone monetary policy would weaken it, but that is far from guaranteed. Get your #currencies update from @MartinSEssex here: https://t.co/RmHCfIwdqp https://t.co/hvETa6mtft
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true. Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/M8WTvZgx2K
  • The Australian Dollar was under selling pressure this past week, but it held its ground. Bearish patterns brew in AUD/USD and AUD/JPY. Will EUR/AUD, GBP/AUD try to break higher again? Get your #currencies update from @ddubrovskyFX here: https://t.co/04kzJSqgNG https://t.co/ulPk1UneMM
GBP/USD Rises on UK Inflation Data

GBP/USD Rises on UK Inflation Data

2017-05-16 17:47:00
Walker England, Forex Trading Instructor
Share:

Talking Points:

The GBP/USD has risen for the second consecutive session this week, as UK inflation data was reported this morning at the highest rate since September 2013. Expectations for UK CPI data for April (YoY) were expected at 2.6%, but reported at an actual 2.7%. Technically, this news has now pushed the GBP/USD back above its 10 day EMA (exponential moving average) at 1.2907. If prices continue to trend higher in the short term, traders will next look for prices to challenge the standing 2017 high at 1.2990.

In the event of a price reversal, traders should first look for the GBP/USD to close below the 10 day EMA on the daily chart. A bearish move of this nature may technically suggest a turn in momentum to the downside. Traders may then look for the GBP/USD to challenge last week’s low at 1.2844 as well as the standing May low at 1.2502. Longer term traders should note that the 200 day MVA (simple moving average) is found at 1.2492. This line remains a key value of support for the GBP/USD, and any short term price decline may be considered a retracement in a broader uptrend if prices remains above this value.

GBP/USD Daily Chart & Averages

GBP/USD Rises on UK Inflation Data

(Created Using IG Charts)

Want to learn more about trading with market sentiment? Get our Free guide here.

Sentiment figures for the GBP/USD remain net negative, with IG Client Sentiment reading at -1.43. With 59% of traders short, when take as a contrarian indicator this value suggests a modest bullish bias for the currency pair. If prices continue to advance to new yearly highs above 1.2990, traders should look for sentiment readings to move towards negative extremes of -2.0 or more. If prices trade lower back below the 10 day EMA, traders may look for sentiment figures to neutralize then flip back to a positive total.

GBP/USD Rises on UK Inflation Data

--- Written by Walker, Analyst for DailyFX.com

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at hisBio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES