Indicator analysis. Daily review on August 28, 2019 for the GBP/ USD currency pair

Trend analysis (Fig. 1).

On Wednesday, the price may begin to move down, with the target of 1.2197 - a pullback level of 38.2% (blue dashed line).

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Fig. 1 (daily chart).

Comprehensive analysis:

- indicator analysis - down;

- Fibonacci levels - down;

- volumes - down;

- candlestick analysis - down;

- trend analysis - down;

- Bollinger Lines - up;

- weekly schedule - down.

General conclusion:

On Wednesday, the price may continue to move down.

An unlikely scenario is an upward movement with a break through of the resistance line 1.2299 (red bold line).

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Indicator analysis. Daily review on August 28, 2019 for the EUR / USD currency pair

Trend analysis (Fig. 1).

On Wednesday, the downward movement with the target of 1.1065 is the support line (blue bold line). There is a chance of breaking this line down and then continue to the next target of 1.1053, which is the lower fractal.

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Fig. 1 (daily chart).

Comprehensive analysis:

- indicator analysis - down;

- Fibonacci levels - down;

- volumes - down;

- candlestick analysis - down;

- trend analysis - down;

- Bollinger Lines - down;

- weekly schedule - down.

General conclusion:

On Wednesday, the downward movement with the target of 1.1065 is the support line (blue bold line). There is a chance of breaking this line down and then continue to the next target of 1.1053, which is the lower fractal.

An unlikely scenario is an upward movement with a target of 1.1100 - a pullback level of 23.6% (yellow dashed line).

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Control zones for USD / CHF pair on 08/28/19

If today's repeated test of 1/2 WCZ at 0.9839-0.9819 leads to the formation of a false breakdown pattern, this will make it possible to open a sale. The target of the downward movement remains the weekly control zone of 0.9662-0.9642. The reduction range is large enough, which will allow obtaining a favorable risk to profit ratio.

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Since testing of 1/2 WCZ is repeated, this increases the likelihood of a reversal pattern. Purchases from current levels are not profitable. However, fixing above the control zone cancels the downward priority model.

An alternative model will be developed if the closure of today's American session occurs above the 1/2 WCZ. This will open the way for the pair to grow towards the weekly control zone of 0.9951-0.9929 in the second half of the week. It is important to understand that purchases will become profitable only tomorrow after the formation of a reversal pattern.

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Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.

Weekly CZ - weekly control zone. The area formed by marks from the important futures market, which changes several times a year.

Monthly CZ - monthly control zone. The area is a reflection of the average volatility over the past year.

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Hot forecast for GBP/USD on 08/28/2019 and trading recommendation

The unexpectedly good data on approved mortgages in the UK made it possible for the pound to slightly improve its position. The total number of approved mortgages increased from 42,775 not to 42,800, but to 43,342. Considering the fact that the real estate market in the United Kingdom is one of the main criteria for Great Britain's investment appeal, and the increase in the number of approved mortgages indicates an improvement in the situation in this market, the strengthening of the pound is not something strange. However, after this news, there was a certain informational vacuum for financial markets, since the macroeconomic calendar, in fact, is completely empty until Thursday. Well, the lack of news is a big problem for the media, which just makes money from the distribution of news. So if there is no news, then you need to come up with them. Which was done, just at the very moment when the pound completely worked out the news about the increase in the number of approved mortgage loans, and began to demonstrate attempts to fall. Indeed, in fact, globally, the picture has not changed.

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At this very moment, in a number of mass media, citing anonymous sources, news appeared that the British government was counting on a positive outcome of new negotiations with the European Union on Brexit. Moreover, the emphasis in the news was that Angela Merkel and Emmanuel Macron, during negotiations with Boris Johnson, allegedly softened their rhetoric, especially on the border between Ireland and Northern Ireland. Based on this assumption, an anonymous source said that there is an opportunity to avoid Backstop, which is the main obstacle to reaching a divorce agreement. So the news that the UK and the European Union, at least hypothetically could come to an agreement on Brexit, immediately led to a new wave of pound growth. True, the growth itself was limited, since it was hard to believe in such things. Thus, it's not worth waiting for a rebound. At least until the official statements of London or Brussels on this issue.

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The GBP/USD pair once again returned to the level of 1.2300 amid the information flow about which I wrote above. What we have is 12 trading days expressed in corrective movement from the psychological level of 1.2000. Are there any prerequisites for a change in the main trend, not at all, we continue to hold the downward mood and the current correction, this temporary factor in global consideration.

It is likely to assume a temporary fluctuation within 1.2250-1.2300, after which, depending on the information background, the path of further progress will be chosen. Traders are advised not to take harsh actions and, for starters, to identify a clear consolidation of prices relative to existing boundaries.

Concretizing all of the above into trading signals:

• We consider long positions in case of price consolidation above 1.2300, towards 1.2350.

• We consider short positions in case of price consolidations below 1.2250, towards 1.2200.

From the point of view of a comprehensive indicator analysis, we see that indicators in all the main time sections signal a further upward trend. It is worth considering such a moment that in the event of a slowdown, we will see temporary versatile interest in the minute and hour intervals, until the formation of the move.

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GBP/USD: plan for the European session on August 28. Pound buyers try to be optimistic, but domestic political disagreements

To open long positions on GBP/USD you need:

Yesterday, the pound resumed growth after Labour leader Jeremy Corbyn held a meeting at which he openly spoke out against the "hard" Brexit and the policies of British Prime Minister Boris Johnson. However, it was not possible to gain a foothold above weekly highs. At the moment, given the lack of important fundamental statistics, bulls will try to continue the upward trend and get to the resistance level 1.2301, from where a direct road opens to the highs of 1.2343 and 1.2387, where I recommend taking profit. However, do not forget that any negative Brexit news will quickly return new sellers to the market. Therefore, the optimal scenario for opening long positions will be the support level of 1.2243, subject to the formation of a false breakdown there, as well as the area of 1.2195, which is located below the lower boundary of the current rising channel.

To open short positions on GBP/USD you need:

Bears will try to maintain the level of 1.2301, and only the formation of a false breakdown there in the morning will allow the resumption of the downward correction in the pound in order to update support at 1.2243, which runs slightly below the moving average. However, a more important task for sellers will be to break through and consolidate below this level, which will lead to a further decrease in GBP/USD to the support area of 1.2195, where I recommend taking profit. In the scenario of a continuation of the upward trend, and growth above the resistance of 1.3201, it is best to return to short positions to rebound from a resistance of 1.2343 and 1.2387.

Signals of indicators:

Moving averages

Trading is conducted above 30 and 50 moving average, which indicates the pair's growth in a trend.

Bollinger bands

In case of pound growth, the upside potential will be limited by the upper boundary of the indicator in the area of 1.2301. A break of the lower border at 1.2255 will increase pressure on the British pound.

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Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: Fast EMA 12, Slow EMA 26, SMA 9
  • Bollinger Bands 20
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EUR/USD: plan for the European session on August 28. Bears aim to break support at 1.1086, and German data may help

To open long positions on EURUSD you need:

Yesterday's good report on US consumer confidence led to another rise in the US dollar and pulled down the euro to support area of 1.1086. At the moment, long positions can be opened from this range only if a false breakdown is formed there. If there are no active purchases in this range, I recommend postponing long positions until a low of 1.1055 is updated, which can be tested after weak data on German import prices and lending in the eurozone. An equally important task for the first half of the day for buyers is also to return to the resistance level of 1.1119, as this will only allow renewal of the upward correction and update the high of 1.1151, where I recommend taking profit.

To open short positions on EURUSD you need:

Bears will rely on weak reports on Germany and the eurozone with the main goal of updating the low of 1.1086 and consolidating below, which will further increase pressure on EUR/USD and lead to a further downward trend in the support area of last week at 1.1055, where I recommend taking profits. If the euro rises in the morning, only the formation of a false breakdown in the resistance area of 1.1119 will be a signal to open short positions. Selling immediately on the rebound is best done from a high of 1.1151.

Signals of indicators:

Moving averages

Trading below 30 and 50 moving averages, which indicates the return of euro sellers to the market.

Bollinger bands

A break of the lower border of the indicator in the region of 1.1075 will only increase pressure on the euro. Growth will be limited by the upper level at 1.1115.

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Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: Fast EMA 12, Slow EMA 26, SMA 9
  • Bollinger Bands 20
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Technical analysis of ETH/USD for 28/08/2019:

Crypto Industry News:

According to New York analytical company Blockchain Chainalysis, only 8.1% of all funds sent to cryptocurrency mixers are stolen funds.

In its latest webinar, Chainalysis reported that most of the funds sent to cryptocurrency blending services or tumblers come from exchanges, indicating that such funds are mainly used for privacy purposes, not for illegal activities.

The webinar 'Cryptocurrency Typologies: What You Need to Know About Who is Who in Blockchains' covers 14 different types of risk in the cryptographic industry, including darknet markets, terrorist financing, sanctioned cryptocurrency addresses, stolen funds, frauds and more.

In the webinar presentation, Chainalysis described the cryptographic mixer as websites or software for obfuscating the source of funds, which does not require any Know Your Customer procedures, exists in both Clearnet and Darknet and is usually centrally controlled.

Chainalysis claims that as much as 40% of all crypto tumbler funds come from cryptocurrency exchanges, and only 2.7% are shipped from the darknet market.

A significant proportion of cryptographic mix funds represent those from other mixing services, which is supposed to add an additional layer of a blackout, explained Hanna Curtis, Data Manager at Chainalysis, senior product manager.

While stolen coins make up about 8% of the funds going through cryptographic mixers, these anonymization services are still the main destination for cryptocurrencies after their theft, Curtis said.

Technical Market Overview:

The ETH/USD pair keep trading in a consolidation zone in low liquidity and volatility conditions and might be even developing a Triangle pattern. The market is positioned between the technical support located at the level of $178.81 and technical resistance located at the level of $196.76. Despite the fact, that the whole WXYXZ corrective cycle might have been completed at the level of $172.82 on 15th of August, there is still no bullish momentum present on the market. The global investors should then await the breakout in either direction.

Weekly Pivot Points:

WR3 - $218.26

WR2 - $210.07

WR1 - $196.01

Weekly Pivot Pont - $185.93

WS1 - $171.02

WS2 - $161.63

WS3 - $146.97

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The current cycle is wave 2 of the higher degree and it might have been completed, so the uptrend should resume soon. The global investors are waiting for a breakout above the level of $238.68 to confirm the resumption of the uptrend.

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Technical analysis of BTC/USD for 28/08/2019:

Crypto Industry News:

Bitcoin prices may face new volatility after Craig Wright was ordered to pay 500,000 Bitcoins to brother Dave Kleiman, his deceased business partner.

A payout - worth over $ 5 billion at the time of writing - could attract a 40% tax rate that Kleiman's assets would have to pay. There are concerns that 200,000 coins may be dropped onto the market to settle these $ 2 billion, potentially causing a collapse.

In an interview with fintech online magazine, Wright said he would comply with a court order that alleges he stole hundreds of thousands of Bitcoins by Dave Kleiman.

The ruling ends the case, which has been going on for years and has involved an increasing number of third parties far from Wright and his entourage.

Faced with numerous reports of fraud on social media, Wright even began suing those who disagreed with his alleged proof that he created Bitcoin. The trials did not lead to anything, while this week those who publicly supported Wright's original statements withdrew their support.

Technical Market Overview:

The high of the recent BTC/USD rally was made at the level of $10,599, just above the 38% of the Fibonacci retracement, but no follow-through has occurred yet as the price got back to the channel again. The market is still hovering around the level of $10,000 which seems to be pivotal for the further price movements. The upper channel boundary has not been violated as well, so the bears are still in control of the market.

Weekly Pivot Points:

WR3 - $11,710

WR2 - $11,306

WR1 - $10,534

Weekly Pivot Pont - $10,091

WS1 - $9,320

WS2 - $8,854

WS3 - $8,140

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The larger degree WXY correction might have been completed and the market might be ready for another impulsive wave up of a higher degree. Any violation of the level of $9,049 invalidates the bullish impulsive scenario.

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Technical analysis of GBP/USD for 28/08/2019:

Technical Market Overview:

The GBP/USD pair has made another marginal higher highs at the level of 1.2307 during the corrective pull-back. The Broadening Wedge price pattern is getting expanded and the target for bulls is seen at the level of 1.2381. This is the short-term key resistance level and if violated, the correction might evolve into more trending move higher. Nevertheless, the whole move up is still a part of the correction, because it does not look like the beginning of a new, impulsive trend. The pair is currently testing the nearest technical support located at the level of 1.2265 in overbought market conditions. The next support is seen at the level of 1.2324, which is a 61% Fibonacci retracement.

Weekly Pivot Points:

WR3 - 1.2616

WR2 - 1.2455

WR1 - 1.2395

Weekly Pivot Pont - 1.2226

WS1 - 1.2161

WS2 - 1.2001

WS3 - 1.1935

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. In order to reverse the trend from down to up, the key level for bulls is seen at 1.2429 and it must be clearly violated. As long as the price is trading below this level, the downtrend continues.

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Technical analysis of GBP/USD for 28/08/2019:

Technical Market Overview:

The GBP/USD pair has made another marginal higher highs at the level of 1.2307 during the corrective pull-back. The Broadening Wedge price pattern is getting expanded and the target for bulls is seen at the level of 1.2381. This is the short-term key resistance level and if violated, the correction might evolve into more trending move higher. Nevertheless, the whole move up is still a part of the correction, because it does not look like the beginning of a new, impulsive trend. The pair is currently testing the nearest technical support located at the level of 1.2265 in overbought market conditions. The next support is seen at the level of 1.2324, which is a 61% Fibonacci retracement.

Weekly Pivot Points:

WR3 - 1.2616

WR2 - 1.2455

WR1 - 1.2395

Weekly Pivot Pont - 1.2226

WS1 - 1.2161

WS2 - 1.2001

WS3 - 1.1935

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. In order to reverse the trend from down to up, the key level for bulls is seen at 1.2429 and it must be clearly violated. As long as the price is trading below this level, the downtrend continues.

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Trading plan for EURUSD for August 28, 2019

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Technical outlook:

The EUR/USD pair remains unchanged from what was discussed yesterday. With price action just below 1.1090 mark at this point in writing, we can expect short term/intraday rally through 1.1120 levels. At the same time, the euro is expected to remain well capped between 1.1165 levels since the drop from 1.1165 through 1.1086 seems to be in 5 waves. Ideally, a retracement can take prices towards 1.1120, before reversing lower again. On the flip side, a push above 1.1165 levels, would open doors for a re-test of 1.1240/50 and also probable push towards 1.1285/90 levels before turning lower again. Please note that a push higher towards 1.1250 would still keep the structure intact but may be delayed for a push below 1.1020 levels. Interim/potential price resistance remains at 1.1250 levels, followed by 1.1285/90 and higher respectively; while interim support remains intact at 1.1020/30 levels.

Trading plan:

Remain short, stop at 1.1412 target up to 1.0950

Good luck!

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Technical analysis of EUR/USD for 28/08/2019:

Technical Market Overview:

The bears at the EUR/USD pair have pushed the price towards the level of 1.1101, which is technical support for the price after the Doji candlestick formation was made. The price has retraced more than 61% of the last spike up, so now it is clear the bears are in control of the market. The momentum returned to the neutral level and the market conditions are now coming off the overbought levels as well. Please keep an eye on the current developments as any move lower can change the market positioning for the next days.

Weekly Pivot Points:

WR3 - 1.1293

WR2 - 1.1218

WR1 - 1.1193

Weekly Pivot Pont - 1.1119

WS1 - 1.1089

WS2 - 1.1014

WS3 - 1.0984

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. The downtrend is valid as long as it is terminated or the level of 1.1445 clearly violated. There is an Ending Diagonal price pattern visible on the larget timeframes that indicate a possible downtrend termination soon. The key short-term levels are technical support at the level of 1.1027 and the technical resistance at the level of 1.1250.

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Technical analysis: Important Intraday Levels For EUR/USD, August 28, 2019

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When the European market opens, some economic data will be released such as German 10-y Bond Auction, Private Loans y/y, M3 Money Supply y/y, German Import Prices m/m, and German GfK Consumer Climate. The US will also publish the economic data such as Crude Oil Inventories, so amid the reports, the EUR/USD pair will move with low to medium volatility during this day. TODAY'S TECHNICAL LEVELS: Breakout BUY Level: 1.1145. Strong Resistance: 1.1139. Original Resistance: 1.1128. Inner Sell Area: 1.1117. Target Inner Area: 1.1091. Inner Buy Area: 1.1065. Original Support: 1.1054. Strong Support: 1.1043. Breakout SELL Level: 1.1037. (Disclaimer)The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis: Important Intraday Levels for USD/JPY, August 28, 2019

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In Asia, Japan will not release any economic data today, but the US will publish the Crude Oil Inventories. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance.3 : 106.36.

Resistance. 2: 106.15.

Resistance. 1: 105.94.

Support. 1: 105.70.

Support. 2: 105.49.

Support. 3: 105.28.

(Disclaimer)

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Forecast for EUR / USD pair on August 28, 2019

EUR / USD pair

On Tuesday, the euro fell by 10 points, which technically allowed the indicators to clarify their intentions without pressure. The leading Marlin oscillator on the daily chart is fixed in the zone of negative values.

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On the four-hour chart, the price was reflected from the resistance of the MACD line, which is currently developing below the red indicator line of balance. The Marlin Oscillator also fixed in the zone of a declining trend. Now, you need to gain a foothold under the Fibonacci line of 123.6% found below the price of 1.1074 in order to create a signal in the medium-term decline in price. After this signal, we expect the price in the region of the Fibonacci level of 138.2% at the price of 1.0980 and this is the main scenario.

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If the price fixes above the MACD line at 1.1108 on H4, another attempt to take the resistance price of the embedded line of the price channel in the region of 1.1172 is possible.

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Forecast for GBP / USD pair on August 28, 2019

GBP / USD pair

Yesterday, the growth of the pound negates the fall of Monday. However, on the daily chart, it met insurmountable resistance of the indicator line of the balance line (red), which is currently slightly below the indicator line of the MACD trend line (blue).

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A double divergence has already formed on the four-hour chart. The reversal signal of the Marlin oscillator has amplified while the market is still "hot". The signal line of the oscillator is still in the growth zone and in fact, the price is higher than all indicator lines. On the daily chart, the price can gather strength and go on the assault to the second target of 1.2350/81. To fix the primary reversal signals, it is necessary to fix the price below the minimum of yesterday, which will also correspond to the price drift under the embedded line of the price channel on the daily chart. The MACD line of four-hour scale also tends to be at this level. Probably, a key level is being formed here. In case of a breakout, you should wait before sales.

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Forecast for AUD / USD pair on August 28, 2019

AUD / USD pair

The Australian dollar plunged down once again, losing 22 points at the Fibonacci level of 23.6% yesterday. The Oscillator Marlin on the daily chart still remains in the zone of negative numbers in the zone of a declining trend. Still, the immediate goal of the decline is once again the nested line of the red price channel in the region of 0.6713. The second target is the blue channel line in the area of 0.6657.

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On a four-hour chart, the price is fixed below the lines of balance and MACD. The Marlin oscillator is in the descending area. We are waiting for the development of the "Australian" considering the declining scenario.

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USD / JPY vs EUR / JPY vs GBP / JPY. Comprehensive analysis of movement options from August 28, 2019 APLs & ZUP analysis

Let's consider the development of the USD / JPY currency movement of the "country of the rising sun" and its cross-instruments EUR / JPY and GBP / JPY will begin to flow from August 28, 2019.

Minuette operational scale (H4 timeframe)

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US dollar vs Japanese yen

The development of the USD / JPY currency movement of the "country of the rising sun" from August 28, 2019 will be due to the development and direction of the breakdown of the boundaries of the equilibrium zone (105.85 - 105.60 - 105.30) of the Minuette operational scale. The movement markings inside this zone are shown in the animation chart.

The breakdown of the lower boundary of ISL61.8 (support level of 105.30) of the equilibrium zone of the Minuette operational scale fork will make it relevant to continue the development of the downward movement of USD / JPY to the targets - the lower boundary of ISL61.8 (105.00) of the equilibrium zone of the Minuette operational scale fork - the final Schiff Line Minuette (104.80) - the starting line of the FSL Minuette (104.47) - the control line of the LTL Minuette (104.05).

In case of breakdown of the upper boundary of ISL38.2 (resistance level of 105.85) of the equilibrium zone of the Minuette operational scale fork, the upward movement of the currency of the country of the rising sun can be continued to the upper boundary of ISL38.2 (106.10) of the equilibrium zone of the Minuette operational scale fork and the boundaries of the 1/2 Median Line Minuette channel (106.20 - 106.60 - 107.05).

The details of the USD / JPY movement, depending on the breakdown direction of the above equilibrium zone, are shown in the animated chart.

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Euro vs Japanese yen

The development of the cross-instrument EUR / JPY movement from August 28, 2019 will be determined by the development and direction of the breakdown of the channel boundaries 1/2 Median Line (117.70 - 117.45 - 117.20) of the Minuette operational scale fork. We look at the markup on the animation chart.

In case of breakdown of the upper boundary of the 1/2 Median Line Minuette channel (resistance level of 117.70), the upward movement of EUR / JPY can be directed to the boundaries of the equilibrium zones of the Minuette operational scales fork - (118.30 - 118.80 - 119.30) and Minuette (118.40 - 119.00 - 119.60).

On the other hand, the breakdown of the lower boundary of the 1/2 Median Line channel (support level of 117.20) of the Minuette operational scale fork will make it possible to continue the development of the downward movement of this cross-instrument to the targets - SSL start line Minuette (116.80) - local minimum 116.54 - SSL start line (116.45) Minuette operational scale - LTL Minuette control line (116.30).

The details of the EUR / JPY movement, depending on the working out of the boundaries of this channel, are presented in the animated chart.

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Great Britain pound vs Japanese yen

Meanwhile, the development of the GBP / JPY cross-instrument movement from August 28, 2019 will depend on the direction of the breakdown of the range :

  • resistance level of 129.95 (control line UTL Minuette operational scale fork);
  • support level of 129.40 (start line SSL Minuette operational scale fork).

In case of the breakdown of the UTL control line (resistance level of 129.95) of the Minuette operational scale fork, the upward movement of GBP / JPY will continue to the targets - 1/2 Median Line Minuette (130.20) - local maximum 130.67 - upper boundary of the channel 1/2 Median Line Minuette (131.30) - lower boundary ISL38.2 (132.60) of the equilibrium zone of the Minuette operational scale fork.

A combined breakdown of the SSL Minuette start line (support level of 129.40) and the lower boundary of the 1/2 Median Line channel (support level of 129.00) of the Minuette operational scale will confirm the continued development of the downward movement of this cross-instrument to the boundaries of the 1/2 Median Line channel (127.40 - 126.60 - 125.80) Minuette operational scale fork.

We look at the animated chart for the GBP / JPY movement options, depending on the breakdown direction of the above range.

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The review is made without taking into account the news background. The opening of trading sessions of the main financial centers does not serve as a guide to action (placing orders "sell" or "buy").

The formula for calculating the dollar index:

USDX = 50.14348112 * USDEUR0.576 * USDJPY0.136 * USDGBP0.119 * USDCAD0.091 * USDSEK0.042 * USDCHF0.036.

where the power coefficients correspond to the weights of the currencies in the basket:

Euro - 57.6%;

Yen - 13.6% ;

Pound Sterling - 11.9%;

Canadian dollar - 9.1%;

Swedish Krona - 4.2%;

Swiss franc - 3.6%.

The first coefficient in the formula leads the index to 100 at the start date of the countdown - March 1973, when the main currencies began to be freely quoted relative to each other.

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Fractal analysis of the main currency pairs on August 28

Forecast for August 28:

Analytical review of currency pairs on the scale of H1:

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For the euro / dollar pair, the key levels on the H1 scale are: 1.1249, 1.1205, 1.1189, 1.1170, 1.1135, 1.1107, 1.1077 and 1.1050. Here, the price forms a pronounced structure for the top of August 23 and is currently in the correction zone. The continuation of the movement to the top is expected after the breakdown of the level of 1.1135. In this case, the first goal is 1.1170. The breakdown of which will allow us to count on movement to the level of 1.1189, where consolidation is near this value. The passage of the price at the noise range 1.1189 - 1.1205 should be accompanied by a pronounced upward movement. Here, the goal is 1.1249. We expect a pullback to this level from this level.

Consolidated movement is expected in the range of 1.1107 - 1.1077. Hence, the probability of a turn to the top is high. The breakdown of the level of 1.1077 will lead to the development of a downward movement. In this case, the target is 1.1050.

The main trend is the ascending structure of August 23.

Trading recommendations:

Buy 1.1135 Take profit: 1.1170

Buy 1.1172 Take profit: 1.1189

Sell: 1.1075 Take profit: 1.1052

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For the pound / dollar pair, the key levels on the H1 scale are: 1.2425, 1.2372, 1.2345, 1.2302, 1.2254, 1.2224 and 1.2183. Here, we specified the key objectives for the ascending structure of August 20. The continuation of the movement to the top is expected after the breakdown of the level of 1.2302. In this case, the target is 1.234. Price consolidation is in the range of 1.2345 - 1.2372. For the potential value for the top, we consider the level of 1.2425. Upon reaching this value, we expect a pullback to the bottom.

Short-term downward movement is expected in the range of 1.2254 - 1.2224. The breakdown of the latter value will lead to in-depth movement. Here, the target is 1.2183. This level is a key support for the top.

The main trend is the local structure for the top of August 20.

Trading recommendations:

Buy: 1.2302 Take profit: 1.2345

Buy: 1.2372 Take profit: 1.2425

Sell: 1.2253 Take profit: 1.2225

Sell: 1.2222 Take profit: 1.2183

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For the dollar / franc pair, the key levels on the H1 scale are: 0.9920, 0.9893, 0.9877, 0.9839, 0.9817, 0.9777, 0.9756, 0.9704, 0.9673, 0.9650 and 0.9586. Here, the price is in equilibrium: the downward structure of August 23, as well as the formation of the potential for the top of August 26. Short-term downward movement is expected in the range of 0.9777 - 0.9758. The breakdown of the latter value will lead to a movement to the level of 0.9735, where consolidation is near this level. The breakdown of the level of 0.9735 will lead to the development of a downward structure from August 23. In this case, the first target is 0.9704.

Short-term upward movement is possibly in the range of 0.9817 - 0.9839. The breakdown of the latter value will lead to the development of the ascending structure from August 26. Here, the target is 0.9877. Price consolidation is in the range of 0.9877 - 0.9893. For the potential value for the top, we consider the level of 0.9920. Upon reaching which, we expect a pullback to the bottom.

The main trend is the equilibrium situation.

Trading recommendations:

Buy : 0.9817 Take profit: 0.9836

Buy : 0.9842 Take profit: 0.9875

Sell: 0.9777 Take profit: 0.9760

Sell: 0.9756 Take profit: 0.9735

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For the dollar / yen pair, the key levels on the scale are : 107.88, 107.14, 106.87, 106.52, 105.65, 105.37, 104.92 and 104.44. Here, the price is in equilibrium: the descending structure of August 23, as well as the ascending structure of August 26. The continuation of the movement to the top is expected after the breakdown of the level of 106.52. In this case, the target is 106.87, where consolidation is near this level. The passage of the price at the noise range 106.87 - 107.14 should be accompanied by a pronounced upward movement. Here, the potential target is 107.88. Consolidation is near this level.

Short-term downward movement is possibly in the range of 105.65 - 105.37. The breakdown of the latter value will lead to the development of a downward structure. In this case, the first goal is 104.92. For the potential value for the bottom, we consider the level of 104.44, where consolidation is near this level.

The main trend: the equilibrium situation: the descending structure of August 23, as well as the ascending structure of August 26.

Trading recommendations:

Buy: 106.52 Take profit: 106.85

Buy : 107.15 Take profit: 107.88

Sell: 105.35 Take profit: 104.94

Sell: 104.90 Take profit: 104.46

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For the Canadian dollar / US dollar pair, the key levels on the H1 scale are: 1.3379, 1.3357, 1.3328, 1.3318, 1.3305, 1.3275, 1.3259, 1.3241 and 1.3217. Here, the price forms a pronounced potential for the upward movement of August 27. The continuation of the movement to the top is expected after the breakdown of the level of 1.3305. In this case, the target is 1.3318. Consolidation is near this level. The passage of the price at the noise range 1.3318 - 1.3328 should be accompanied by a pronounced upward movement. Here, the target is 1.3357. For the potential value for the top, we consider the level of 1.3379. Upon reaching this level, we expect a pullback to the bottom.

Short-term downward movement is possibly in the range of 1.3275 - 1.3259. The breakdown of the last value will lead to a long correction. Here, the target is 1.3241. This level is a key support for the upward structure. Its passage at the price will lead to the development of a downward movement. In this case, the first potential target is 1.3217.

The main trend is the formation of potential for the top of August 27.

Trading recommendations:

Buy: 1.3305 Take profit: 1.3318

Buy : 1.3328 Take profit: 1.3357

Sell: 1.3275 Take profit: 1.3262

Sell: 1.3257 Take profit: 1.3241

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For the Australian dollar / US dollar pair, the key levels on the H1 scale are : 0.6859, 0.6822, 0.6808, 0.6786, 0.6762, 0.6748 and 0.6725. Here, we are following the formation of the ascending structure of August 26. The continuation of the movement to the top is expected after the breakdown of the level of 0.6786. In this case, the target is 0.6808. Short-term upward movement, as well as consolidation is in the range of 0.6808 - 0.6822. The breakdown of the level of 0.6822 should be accompanied by a pronounced upward movement. Here, the target is 0.6859, where consolidation is near this level, as well as a pullback to the bottom.

Consolidated movement is possibly in the range of 0.6762 - 0.6748. The breakdown of the last value will lead to a long correction. Here, the target is 0.6725. This level is a key support for the ascending structure.

The main trend is the formation of the ascending structure of August 21.

Trading recommendations:

Buy: 0.6786 Take profit: 0.6808

Buy: 0.6809 Take profit: 0.6820

Sell : 0.6745 Take profit : 0.6728

Sell: 0.6722 Take profit: 0.6695

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For the euro / yen pair, the key levels on the H1 scale are: 118.99, 118.67, 118.22, 118.01, 117.74, 117.28, 117.00 and 116.54. Here, the price forms the potential for the top of August 23. The continuation of the upward movement is expected after the breakdown of the level of 117.74. In this case, the first target is 118.01. The passage at the price of the noise range 118.01 - 118.22 will lead to a pronounced movement. In this case, the target is 118.67, where consolidation is near this level. For the potential value for the top, we consider the level of 118.99. Upon reaching this level, we expect a pullback to the bottom.

The range of 117.28 - 117.00 is a key support for the upward structure. Its passage at the price will favor the development of a downward movement. In this case, the first potential target is 116.54.

The main trend is the downward cycle of August 13, the formation of the potential for the top of August 23.

Trading recommendations:

Buy: 117.75 Take profit: 118.01

Buy: 118.22 Take profit: 118.65

Sell: 117.28 Take profit: 117.05

Sell: 117.00 Take profit: 116.55

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For the pound / yen pair, the key levels on the H1 scale are : 133.74, 132.73, 132.17, 131.23, 130.57, 129.00 and 128.12. Here, we follow the development of the ascending structure of August 12. Short-term upward movement is expected in the range of 130.57 - 131.23. The breakdown of the latter value will lead to a pronounced upward movement. Here, the target is 132.17. Short-term upward movement, as well as consolidation is in the range of 132.17 - 132.73. For the potential value for the top, we consider the level of 133.74. Upon reaching which, we expect consolidation, as well as a pullback to the bottom.

The range of 129.00 - 128.12 is the key support for the ascending structure of August 12. The breakdown of the level of 128.12 will favor the development of the downward movement. In this case, the first potential target is 126.48.

The main trend is the ascending structure of August 12.

Trading recommendations:

Buy: 130.58 Take profit: 131.23

Buy: 131.26 Take profit: 132.17

Sell: 128.96 Take profit: 128.12

Sell: 128.10 Take profit: 126.55

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USD/JPY: sell the dollar on growth

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Whoever said anything about Donald Trump's tweets, but the White House owner still managed to bring the markets out of balance. High volatility was observed in the USD/JPY pair. In a short time, quotes managed to go back and forth. Demand for the defensive yen is increasing on Tuesday, as it is difficult for investors and traders to believe in the words of the US president, who announced that there was a call from China. Beijing aggressively calls him to the negotiating table. In addition, the facts indicate the opposite. A spokesman for the Chinese Foreign Ministry said he did not know what Trump was talking about. If the fact of the call is not confirmed and China does not make concessions (which is unlikely), one should not hope for a recovery of USD/JPY.

Bank of America Merrill Lynch calls attempts to raise the dollar in conjunction with the yen an opportunity to sell. According to the forecasts of currency strategists, the pair will stay in the region of 105 until the end of the current quarter, and by the end of the year it will fall to the level of 101.

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American statistics now look good, but do not flatter yourself about its invulnerability and impenetrable immunity. The global trends, from which the negative blows, will do their job. Banking analysts estimate the chance of a recession in the United States before the end of this year 1 to 3. At the same time, the BAML analytical model signals that the likelihood of such a scenario has increased to 20%.

The recession in the global economy is becoming increasingly apparent. New statistical data is expected to continue to support fears about the consequences of a trade war, the end and edge of which is not visible. It is worth noting that Trump regularly plays with the emotions of market participants and with China, included. The analyst community believes that Beijing is ready to tolerate and wait for the US presidential election in 2020 in the hope that Trump will not win.

Decrease in the USD/JPY quotes should ensure the Fed rate cut and preservation of soft rhetoric. An additional driver promises to be the stock market. In the second half of the year, the peak on it will finally form, and control will pass to the "bears". According to banking analysts, in the context of a trade war and a global recession, easing the Fed's policy is unlikely to ensure a steady increase in risk appetite.

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Crypto hamsters drive growth, is it worth selling Bitcoin in this case (August 27)

Greetings, crypto enthusiasts and crypto-hamsters, a week has passed since our last review, and the course of the first cryptocurrency, strictly speaking, remained in the same place. What is the reason for such an attractive platform? A return to the $ 10,000 level was facilitated by a layer of negative information that has been holding us back for more than a week. The large-scale crypto pyramid PlusToken began to move its capital after law enforcement agencies became interested in it. By the way, a considerable amount of funds is involved in the form of moving $ 2 billion, and the fact that they can start to merge them somewhere, leaving customers' deposits empty, certainly scares traders. The second injection factor was inspired from the United States,

I can't say that this background exerted tremendous pressure during the intervals of the past week, but the restraint of the leading cryptocurrency is clearly visible.

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Digest of bygone days:

Arcane Research conducted a study of the dominance of Bitcoin in the crypto industry. According to company analysts, CoinMarketCap statistics regarding total market capitalization (dominance) are not true, and the level of 69% is underestimated, since the actual share of bitcoin in the market can exceed 90%.The British court to some extent recognized Bitcoin as property. This conclusion came as a result of the trial of the theft of 100 BTC. In UK law, cryptocurrency is considered data, so the owner cannot demand its return in case of theft. However, the lawyers in this case were able to prove to the judge that the theft was not a transfer of ownership. Now the court is awaiting the conclusion of a working group, which should determine by the end of August whether it is legal to recognize Bitcoin as property.Bank of England head Mark Carney said central banks should consider joining forces to create a virtual currency that could replace the dollar as a reserve currency. We hear such phrases from crypto enthusiasts quite often, but not from the heads of the Central Bank, and after that it's worth considering.American congressmen visited Switzerland, where they met with experts from the Federal Office for the Protection of Data and Information regarding cryptocurrency from Facebook (Libra). Upon returning, the chairman of the US financial services committee, Maxine Waters, said, "Swiss government officials helped understand Facebook's status, complexity and scope, but I'm still worried about letting the big tech company create an alternative global currency controlled by the private sectors.A federal court in the Southern District of Florida decided to recover a staggering amount of bitcoins from the self-proclaimed Satoshi Nakamoto. The Kleiman v. Wright case ended in defeat, the court decided to recover from the Australian Craig Wright more than half a million bicoins and intellectual property rights that he owned until 2014, the relatives of the deceased Dave Kleiman, who is associated with the creation of the first cryptocurrency . According to a conservative estimate, this is around $ 5.5 billion, of which Kleiman's relatives must pay a tax of 40% of the amount awarded. Now Craig has the opportunity to appeal, which, of course, he will do, and the process will drag on for a long time, but just imagine if the court nevertheless takes the side of Kleiman and they decide to sell part of these bitcoins to pay taxes.

To summarize the information background, and what we see is a lot of rich information that is individual and reacts differently to the crypto industry. In general terms, the pressure remains on the market after all, which reflects the market chart, but you should pay tribute to the stability of the leading cryptocurrency.

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What we have now is the amplitude fluctuation around 7.5% BTC, where the quote is concentrated within the psychological level of $ 10,000.

What are the assumptions for further development?

The bulk of traders is still not ready for growth, maybe the fear factor of last year (2018) plays when, at the same time period, the end of summer, a round of Bitcoin drain began. At the moment, the limits of 9800/10500 (11000) are retained in the market, whether to work within the range, yes, it is possible, but the risk is high. The most acceptable tactic is still waiting for the breakdown of these boundaries.

Key coordinates for the upward stroke: 12330; 13130; 13970. Key coordinates for the downward course: 10000; 9100; 7500.

The general background of the cryptocurrency market

Analyzing the general market capitalization, we see that the market volume continues to sluggish fluctuation in the side channel 256-282 ($ billion). Compared with the previous article, capitalization fell by another $ 12.7 billion and currently amounts to $ 263.6 billion. If we consider the volume chart in general terms, then the current ceilings remain the same: $ 355.1 billion and $ 385.2 billion.

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The index of emotions, aka fear and euphoria of the crypto market, fell from 39p. up to 30p., which reflects the indecision of traders and the fear of decline. That week, the index fell to an extremely low level of 5, which once again confirms the fear of traders in the form of a fear of a repeat of last year.

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Indicator analysis

Analyzing a different sector of timeframes (TF), we see that indicators on all major time periods signal a possible decrease. It is worth taking into account such a moment that now the quote moves in the side channel, does not fall, and thus the indicators on the minute and intraday periods can be variable, consider this in the analysis.

The material has been provided by InstaForex Company - www.instaforex.com

Word and deed: markets expect real steps from Washington and Beijing

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Tensions in the financial markets have eased somewhat amid statements by the United States and China that they are close to concluding a trade agreement.

The day before, the head of the White House Donald Trump said that China on Sunday evening asked to resume trade talks. This came after China's chief trade negotiator, Deputy Prime Minister Liu He said that Beijing was ready to continue consultations with the US to resolve trade contradictions..

Intense fluctuations are now observed on stock exchanges: sharp drops are followed by decisive recovery. At the same time, the foreign exchange market gives alarming signals. In general, the current mood of investors can be described as cautious optimism.

Yesterday, the USD/JPY pair rose to the level of 106.20, and today plummeted to 105.65.

On the eve, the US currency jumped against the yen amid optimism about the prospects for a trade deal between Washington and Beijing, but the market seems to be a little hasty with conclusions. There are still many problems that can provoke an escalation of the conflict between the two largest economies in the world, so some traders chose to take profits at this stage.

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Since the beginning of the month, the AUD/USD pair has been trading in a rather narrow range of 0.6700-0.6800. The good news for the Australian dollar, which serves as an informal indicator of sentiment regarding the Chinese economy, is that its exchange rate has stopped declining. However, the aussie still cannot find the strength to recover, including due to the lack of significant signals about the US and China.

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On Monday, the EUR/USD pair returned to 1.1100, having failed to develop the growth that began last week. As soon as the "bulls" raised their heads, the easing of tension in the trade conflict between the US and China and the disappointing statistics on the business climate from the IFO forced them to go on the defensive.

The fall in German business sentiment to seven-year lows in August increased concerns about a recession in Europe's largest economy and reinforced expectations of broad stimulus measures by the ECB in September.

One of the important indicators for central banks is the level of inflation. Tariffs on Chinese imports spur consumer price growth in the United States, while the European Union, which is suffering from damping demand, is facing a weakening inflation rate of 1%.

This state of affairs gives the ECB carte blanche to launch large-scale mitigation, but in the United Stats, such measures may be regarded as premature.

If this scenario is realized, the euro runs the risk of increased pressure, and the EUR/USD pair may drop to $1.08 by the end of September.

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GBP/USD. August 27th. Results of the day. Opposition resists Boris Johnson's "recklessness"

4-hour timeframe

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Amplitude of the last 5 days (high-low): 116p - 63p - 164p - 100p - 78p.

Average volatility over the past 5 days: 104p (high).

A meeting of the opposing parties of the "hard" Brexit took place today on August 27, to which the United Kingdom is moving with might and main thanks to Boris Johnson. The meeting was convened by Labour leader Jeremy Corbyn, who openly opposes "hard" Brexit and the prime minister's policies. As part of the dialogue, it was decided to try to change the legislation to prevent Johnson from realizing the exit from the EU on October 31. The meeting was attended by representatives of the Scottish National Party, the Liberal Democratic Party, Change UK, the Welsh Plaid Cymru Party and the Green Party. Green Party MP Caroline Lucas called Boris Johnson's desire to leave the EU October 31 no matter what as "recklessness" is and said that changing legislation is the best way to save the country from this "recklessness". In turn, Boris Johnson has already announced via Twitter that the country will leave the EU on time, as "the results of the 2016 referendum must be respected."

At the same time, we finally waited for official comments from EU officials regarding Johnson's statement that Britain is not obligated to pay almost $50 billion for leaving the EU if there is no "deal". EU Commissioner for Economic Affairs Pierre Moscovici said that in any case, London must pay the bill for leaving the eurozone, even if an agreement on Brexit is not concluded. Johnson previously said the UK would pay only about $10 billion. Moscovici noted that if London refuses to pay, it will mean sovereign default. Guy Verhofstadt, Brexit coordinator for the European Parliament, said that the UK's refusal to repay the debt would nullify any transitional arrangements already made. Debt repayment will be the first and necessary condition for dialogue on a trade agreement after Brexit. As you can see, the European Union has something to oppose Johnson's "recklessness". Given the current state of the UK economy, the collapse of the pound, the decline in the country's investment attractiveness, as well as the flight of companies from Great Britain, a trade war is clearly not needed. Britain does not need a "hard" Brexit. Thus, in the next two months we expect a fierce struggle with Boris Johnson, which will be waged on the sidelines of the Parliament.

Meanwhile, the pound sterling continues to rise again. We continue to believe that the British currency's growth is purely technical. Bears loosened their grip a bit, which is enough for the pound to go a little higher. However, market sentiment remains "bearish", so you can expect a resumption of a downward trend at any time.

Trading recommendations:

The pound/dollar currency pair continues to adjust. Formally, long positions remain relevant while aiming for a resistance level of 1.2363, but it is recommended to trade with increasing caution with great caution. It is recommended to sell the pound after the formation of a signal from Ichimoku "dead cross".

In addition to the technical picture, fundamental data and the time of their release should also be taken into account.

Explanation of the illustration:

Ichimoku indicator:

Tenkan-sen is the red line.

Kijun-sen is the blue line.

Senkou Span A - light brown dotted line.

Senkou Span B - light purple dashed line.

Chikou Span - green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD indicator:

Red line and bar graph with white bars in the indicator window.

The material has been provided by InstaForex Company - www.instaforex.com