On Friday, the following strong calendar news will be release:
- 9:30 London time. GBP, GDP YoY (4 sq.), are expected at 1.4%, and the previous value is 1.7%;
- 9:30 London time. GBP, GDP (Q/Q) (4 sq.) Expected at 0.4%, versus the previous value of 0.4%;
- 1:30 London time. USD, basic orders for durable goods for December (m / m), expected at 0.5%, versus the previous value of -0.1%;
- 9:30 PM London time. USD, GDP (Q/Q) (4 sq.) Expected at 3.0%, versus the previous value of 3.2%;
- 2 pm London time. GBP, the speech of the Bank of England Governor, Mark Carney.
EUR / USD pair
Trend analysis (Figure 1)
On Thursday, the news pushed the price in the side channel. On Friday, the market may continue to move upwards near the first target of 61.8% 1.2597. The complex analysis will more accurately determine the price direction.
Fig. 1 (daily chart).
Indicator analysis on the daily schedule (Figure 2).
The system of ADX indicators (Figure 2).
On the last run, the fast line (indicator 5 - white) and the slow line (indicator period 8 - blue) moved up. In this case, the trend should be determined by trend type indicators.
MACD Indicator (period 5/8/13).
The linear part of the MASD indicator.
Fast line (signal) - a line of white color.
The slow line (main line) is the blue line.
The result for the linear part of the MACD indicator is an upward trend.
Histogram of the MACD indicator.
Histogram - columns of black color.
The result of the histogram of the MACD indicator is a downward trend.
Overall: the MACD indicator on the daily chart shows a neutral trend.
Middle lines of the EMA.
The daily chart uses the following midlines.
1 middle EMA line - color white (first shadow).
5 the middle line of the EMA - the color is red (the first shadow).
8 middle EMA line - the color is blue (the first shadow and trend).
13 the middle line of the EMA - the color is yellow (trend).
21 middle EMA line - the color is brown (trend).
At the last run 8, the middle EMA line (blue) moved up, positioned above the 13th EMA midline (yellow) - the signal of the top work.
21, the middle EMA line moves upwards, positioned below the 13th EMA midline, strengthening the signals of the top work.
The bottom line of the EMA middle line system on the daily chart shows an upward trend.
The probability distribution of the indicators are as follows:
the average EMA lines are 24% up;
MACD indicator (linear part) - 38% up;
the MACD indicator (histogram) is 38% down.
The result of the indicator analysis indicates the price will have a weak upward trend.
Fig. 2 (daily chart).
Complex analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- volumes - upwards;
- candle analysis - down;
- trend analysis - up;
- Bollinger lines - up;
- Weekly schedule - up.
General conclusion.
On Friday, the market would likely move up with the first target 1.2597 (61.8% - blue dotted line).
GBP / USD Pair
The price moved down on Thursday. While the market may continue to move up on Friday. The complex analysis will more accurately determine the price direction.
Fig. 1 (daily chart).
Indicator analysis on the daily schedule (Figure 2).
The system of indicators ADX (Figure 2).
On the last run, the fast line (indicator 5 - white) and the slow line (indicator period 8 - blue) moved up. But the fast line (the indicator of period 5 - white) has reached values higher than 90%. In this case, the trend should be determined from the oscillator type of indicators.
Stochastic indicator (period 3/3/4) on the daily chart shows an upward trend (Fig. 2).
The system of RSI indicators (Figure 2).
When working with the daily chart, the following periods are used in the RSI indicator system: 21 (brown), 8 (blue), 13 (yellow), 5 (red).
At the last day's closed candle.
The calculation of the RSI indicator (5) on properties moves up.
Calculation of the RSI indicator (8) by properties moves up.
The bottom line of the RSI indicator system shows an upward trend.
The calculation of the CCI indicator on the properties moves down.
The bottom line of the CCI indicator system shows a downward trend.
The result of the indicator analysis indicates the price will have an upward trend.
Fig. 2 (daily chart).
Complex analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- volumes - down;
- candle analysis - down;
- trend analysis - up;
- Bollinger lines - down;
- Weekly schedule - up.
General conclusion:
On Friday, the GBP / USD pair will move up with the first target 1.4344 (upper fractal).
* The presented market analysis is informative and does not constitute a guide to the transaction.