Technical Outlook

-GBPUSD halted at $1.8394 with buyers entering the market and pushing the price to the next resistance at $1.21789.

-EURUSD price is trading below the 50MA and above the 200MA showing range movement.

USA (USD): USA CORE CPI – YoY

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation. Last month’s YoY CPI increased to 6,4%, higher than the forecast of 6.2%.

The report is due Tuesday, 14 March at 12:30 GMT

GBP/USD Technical Analysis:

Analysis using price action:

GBPUSD does not have a clear trend and is trading between support and resistance of $1.18394 and $1.24571. On 12th Jan a bullish indication of golden cross formation was also seen, after which the price movement went up significantly. Moving forward On 26th Jan 2023, the price formed a clear price pattern-“Double top” with this a strong resistance is formed at 1.24571.

 After the second top form, the buyers were not able to successfully break the pattern and so the sellers took control moving the price below by approx 3.55% in 3 just 3 daily trading sessions. With series of lower high and lows the price halted at $1.18394. Currently the price is trading below the 50MA and above the 200MA meaning it might. The RSI line is at 54.20 showing slight overbought condition.

Recently the price broke the previous high at 1.20626. Traders may look for price to break above  $1.21789 or below $1.18394 for confirmation of BUY or SELL call.

Pivot Points: GBPUSD

EUROPE (EURO): EUROZONE INTEREST RATE DECISION

The six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate. Traders watch interest rate changes closely as short-term interest rates are the primary factor in currency valuation. The last interest rate was set to 3.00%.

The report is due Thursday, 16 March at 13:15 GMT

EUR/USD Technical Analysis:

Analysis using price action:

EURUSD broke the bullish channel and is not in accumulation phase. The MA formed a golden cross after the 50MA crossed above the 200MA on 30th Dec 2023, signaling the prices may go up higher.

The high formation is at $1.10330. The market started to slide down, crossing below the 50MA signaling short-term bearish pressure in the market. However, the 200MA remains below the current trading price. Currently the price has halted at $1.05344 also forming a support.

The RSI line is at 55.23, showing slight overbought condition. Traders must wait for the price to either break above the resistance at $1.07379 or below the support at $1.05344  for a clear indication of where the price may be.

Pivot Points:  EURUSD

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