Breaking News: Bullish $GBPUSD entry at 1.65. Stop loss set at 1.62, aiming for 1.704
From the New York Stock Exchange, my name is Kiana Danial they call me Invest Diva, the go-to investing advisor who helps you make extra money. And this is your Diamond analysis of a currency pair dancing on the forex dance floor, a metaphor we use at Invest Diva’s education program.
The pick of the day is GBP/USD as Mr. British pound dances with Ms. USA. The UK is in the process of dumping a bunch of data on us this week, with the inflation data on Tuesday, the final reading of Q4 GDP on Wednesday and retail sales on Thursday.
On the monthly dance floor, the pair has yet to break the hard-core resistance level of 1.704. On the daily dance floor, pair completed a pullback towards a former declining trend line in place since 2009 top, with the Tenkan line crossing below the Kijun line on the Ichimoku Kinko Hyo, but remains within a bullish channel, and struggling to remain above the Ichimoku cloud. With this week’s data, the pair successfully completes its moves above the Ichimku cloud, we could see more gains towards 1.68143 and 1.704.
On the other hand, a downside breakout of 1.62 would call for 1.587 and 1.56 in extension.
On the world stage, Obama was in Holland yesterday to start talks with G7 leaders. In seeming acceptance of the moves so far from Russia.. “we remain ready to intensify actions, including sanctions… If Russia continues to escalate the situation”. Meanwhile Russia was busy introducing the Rouble as the official currency of Crimea, which will sit alongside the Ukrainian Hyrvnia until the end of 2015. It looks like Crimean business will get a load of tax breaks from Moscow too, just to make that transition more attractive.
The US Department of Energy look to be starting to play their part though. Yesterday they authorized 800 million cubic feet a day of liquefied natural gas to be exported to countries that don’t have free trade agreements with the US.
On a side note, President Obama is off to Brussels today and this article in the Guardiantells you a little more about how much of an expensive logistical issue that is!
Meanwhile, back in the United States, Jeremy Grantham the co-founder of $112n fund manager GMO has warned that the world is heading for a fall and “the next bust will be unlike any other” he continues ” because the Fed and other central banks around the world have taken on all this leverage that was out there and put it on their balance sheets… Assets are overpriced generally (and) they will become cheap again. That’s how we will pay for this, it will be very painful for investors”. Mr Grantham is generally well regarded and has had a lot of success in identifying previous bubbles, so we’ll take this as a well-informed opinion.
Stay tuned for more updates and if you want to become your own analyst, come one over to InvestDiva.com and enroll in our education program.