For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
Trading plan for March 19
At first, let’s consider the economic calendar. As you may know, the Brexit vote was canceled today after the words by the House speaker John Bercow. He said that the Brexit deal would not happen this week unless any clear solution is suggested. There is still an opportunity to trade the British pound today as the average earnings index will be released at 11:30 MT time. According to analysts, the index will reach 3.2%. If the actual level is higher, the GBP get positive momentum.
Now, let’s consider the charts.
At first, let's look at the daily chart of GBP/USD. The pair keeps trading sideways between the 1.3297 and 1.3210 levels. Yesterday the comments by the House speaker pulled the pair towards the weekly pivot at 1.3210. If more uncertainties in Brexit deal come out, the pair will break the 1.3210 level and fall lower to the support at the weekly pivot at 1.3039. Otherwise, bulls will push the cable above the 1.3297 level. If we look at indicators, they don’t give us significant signals, but Parabolic SAR shows an upward movement for the pair.
Let’s consider the H4. The pair has been making slow movements towards the 1.3297 level. If it manages to break this level, the next resistance will lie at 1.3330. The next key level for the pair is placed at 1.3382. On the other hand, if GBP/USD fails to be supported by the positive news, it will fall to the support at 1.3210. The next support lies at 1.3127. ADX shows bulls dominating the market, but they are weak.
Let’s switch to the EUR/GBP chart. After the mixed trading during the last week, yesterday the pair managed to stick above the 0.8554 pivot. The next resistance lies at 0.8636. If the British pound is supported, the pair will fall to the support at 0.8472. The next support is placed at the weekly pivot support at 0.8433. Parabolic SAR shows a downward movement here.
On the H4, we can see that the pair is trading with very low volatility. If the GBP gets stronger, the pair will fall towards the support at 0.8542. The next support is placed at 0.8529. Strong bearish pressure may pull the pair even lower to the support at 0.8509. On the other hand, the pair will rise to the resistance at 0.8580. The next resistance lies at 0.8601.
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