Trading plan for 28/03/2018

Yesterday's US Dollar rally is not continuing in Asia, but the swing of sentiment continues. USD / JPY managed to recover from 105.30 to 105.60, AUD is slightly stronger, although AUD / USD did not manage to exceed 0.77. The stock market is sunk in red; gold is red as well, but crude oil is stable despite the negative overtone of the API report. The closer to the holidays and the end of the quarter, the easier it is for chaotic movements.

On Wednesday 28th of March, the event calendar light in the important news releases, but the global investors will keep an eye on the US Final GDP data and Pending Home Sales data. Later in the day there is a scheduled speech from the FOMC member Raphael Bostic.

GBP/USD analysis for 28/03/2018:

The FX market on Wednesday is relatively calm. The financial media reports that the US and South Korea are working on revising the trade agreement. Information that the North Korean leader Kim Jong-Un is opening up a dialogue with the West also gives reasons for stabilizing moods. The other news is that the representatives of the Irish government, according to which London is close to presenting a new idea, how to prevent the creation of a "hard border" with Ireland after Brexit. The Irish side has been assured that the work on the project is at an advanced stage.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. Today in the morning GBP/USD approaches 1.42, continuing the rebound after a strong correction from Tuesday. Nevertheless, the lower line of the acceleration channel (dashed violet) has capped the rally and currently, the price is returning towards the technical support at the level of 1.4077. The overbought market conditions support the bearish bias. In a case of a further breakout, the next technical support is seen at the level of 1.3981.


The material has been provided by InstaForex Company -