Today is a better morning for the Euro than the British Pound. Better than expected manufacturing PMI was reported from Spain, Italy and France. German manufacturing PMI came in at just slightly below the forecast and previous fact. Great Britain’s manufacturing PMI, on the other hand, was reported at worse than expected and worse than the previous fact.
So far, we are seeing a 4th day in decline for GBP USD. On Friday the price broke mypreviously plotted trend line down, and on a DTF Parabolic SAR has reversed in Bears favor. On a 4HTF – Parabolic SAR is pointing down and the indicator is well above the price. MACD lines have crossed the histogram to the downside and our price targets are going to be first at a strong area of support from 2017 between 1.20444 and 1.20378. Next target will be the 2019 low at 1.20143, further movement down will give us a target area of 1.19860 – the lowest low of 2017. Historically there is only one lower price target from October 2016 at 1.19048, but let's not get ahead of ourselves.
Tomorrow, British MPs will be returning from summer break and they will be doing everything in their power to pass legislation to block a no-deal Brexit. This will be hard to do as their already limited time has been cut by PM Boris Johnsons government when they succeeded in suspending the parliament for close to a month before the Brexit deadline. Therefore, if the MPs do succeed in pushing something through, we may see some bullish momentum, although it may be short lived as the UK-Euro future still remains negatively unclear. Bullish targets will be at our 23.6, 38.2 and 50% Fibo.
Tomorrow morning will be exciting for the Australian Dollar. They will publish Retail Sales at 1:30 GMT and following that, at 4:30 GMT the RBA will announce their decision on Interest Rate.
Switzerland will report on CPI at 6:30 and Great Britain Construction PMI at 8:30 GMT.
During the day United States will show us their figures for manufacturing and ISM manufacturing PMI at 13:45-14:00 GMT. In addition, FOMC Member Rosengren is to speak at 21:00 GMT. Considering that the FED will be making a decision on the interest rate on September 18th and the relationship between the FED and the US president is discombobulated to say the least – top that off with the escalating tensions and additional tariffs between the US and China, I believe each speech by the FOMC should be regraded for hints and updates on what’s ahead.
So far, we are seeing a 4th day in decline for GBP USD. On Friday the price broke mypreviously plotted trend line down, and on a DTF Parabolic SAR has reversed in Bears favor. On a 4HTF – Parabolic SAR is pointing down and the indicator is well above the price. MACD lines have crossed the histogram to the downside and our price targets are going to be first at a strong area of support from 2017 between 1.20444 and 1.20378. Next target will be the 2019 low at 1.20143, further movement down will give us a target area of 1.19860 – the lowest low of 2017. Historically there is only one lower price target from October 2016 at 1.19048, but let's not get ahead of ourselves.
Tomorrow, British MPs will be returning from summer break and they will be doing everything in their power to pass legislation to block a no-deal Brexit. This will be hard to do as their already limited time has been cut by PM Boris Johnsons government when they succeeded in suspending the parliament for close to a month before the Brexit deadline. Therefore, if the MPs do succeed in pushing something through, we may see some bullish momentum, although it may be short lived as the UK-Euro future still remains negatively unclear. Bullish targets will be at our 23.6, 38.2 and 50% Fibo.
Tomorrow morning will be exciting for the Australian Dollar. They will publish Retail Sales at 1:30 GMT and following that, at 4:30 GMT the RBA will announce their decision on Interest Rate.
Switzerland will report on CPI at 6:30 and Great Britain Construction PMI at 8:30 GMT.
During the day United States will show us their figures for manufacturing and ISM manufacturing PMI at 13:45-14:00 GMT. In addition, FOMC Member Rosengren is to speak at 21:00 GMT. Considering that the FED will be making a decision on the interest rate on September 18th and the relationship between the FED and the US president is discombobulated to say the least – top that off with the escalating tensions and additional tariffs between the US and China, I believe each speech by the FOMC should be regraded for hints and updates on what’s ahead.