GBPUSD analysis week from March 16-20, 2020 - FX24.net

    Fundamental analysis

    On Sunday, March 15, the US Federal Reserve made an urgent decision to cut interest rates by 100 basis points to 0-0.25%, the lowest interest rate since 2015 and pump more. Money into the economy by purchasing additional government bonds worth at least 700 billion dollars.

    This surprise rate decision by the Fed came less than two weeks after lowering the emergency interest rate to 50 basis points for the first time on March 3. But in the face of the devastating devastation of the Covid 19 epidemic to the economy, dropping by 50 basis points was not enough.

    Under the sudden influence of the Fed's decision, opening the first trading session of the week, GBPUSD rebounded more than 55 pips, reaching the highest level at 1.2419 but then quickly dropped back more than 130 pips to 1.2284.

    Technical analysis

    Technically, GBPUSD is breaking the Demand zone in the zone of 1.23. Moreover, the Demand zone has not yet been reached. Most likely, GBPUSD will test the Demand zone the day before the next move. If the Demand zone stands at 1.22, the GBPUSD price may bounce back to the previously broken Demand zone at 1.272. In case the Demand 1.22 area is penetrated, the price of GBPUSD may fall to the lowest area of ​​all time at 1.19.

    Buying GBPUSD at Demand regions is the recommended strategy this week.

    REFERENCE STRATEGIES

    Buy I: 1,222

    Stop loss 1.2184

    Take profit 1.2708

    Buy II: 1,202

    Stop loss 1.1953

    Take profit 1.2708


    Recommendation: This is just a Trading Idea. For more accurate analysis, you should incorporate other indicators that you have mastered. In particular, always focus on capital management methods to prevent any possible market situation.

    Author: Nguyen Chi Thanh

    Do not forget to like and share this article

    fb-share-icon

    No comments