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Sterling in focus: GBP/USD, EUR/USD, USD/JPY Analysis

Nov 7 2019, 09:34 PM (BDT) | OlympTrade.com

BoE has left the interest rate unchanged at 0.75%, which was widely expected. Two MPC members voted for a rate cut, while 7 members voted in favor of leaving the rate unchanged. The fact that the vote was not unanimous has bearish impact on the pound. BoE governor Marc Carney delivered his statement 30 minutes later. In his speech, he stated that "Brexit uncertainties are weighing particularly hard on business investment". He also mentioned that although the risk of a no-deal Brexit has reduced significantly, growth of the British economy will be limited by the effects of Brexit.

On a daily TF, the GBP/USD, pair remains in a slightly downward range. The Ichimoku Cloud bias is strongly bullish. The pair may test the 38.2% Fibo level and Ichimoku base line as a retracement before continuing the uptrend.

Resistance: R1 1.30125, R2 1.31765
Support:  S1 38.2% Fibo 1.26098, S2 50% Fibo 1.24854

The EUR/USD chart remains almost unchanged: it shows us two days of light trading with slight rejection of higher prices. The pair is resting on the top of the Ichimoku Cloud, in the area of 38.2% Fibo around 1.10759. The global outlook remains bearish.

Resistance: R1 23.6% Fibo 1.11086, R2 1.11283, R3 1.11755.
Support: S1 50% Fibo 1.10293, S2 1.10 – 1.099939 (61.8% Fibo), S3 1.09259.

In the USD/JPY chart, the resistance proved to be strong. On a daily TF, we can see that the pair has been halted at the resistance level in the area of 109.143 for three days in a row, with rejection of lower prices. The Ichimoku Cloud indicates a strong bullish bias.

Resistance: R1 61.8% Fibo 109.362, R2 109.705, R3 110.679.
Support: S1 50% Fibo 108.423, S2 38.2% Fibo 107.484, S3 106.882.

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