EURUSD and GBPUSD charts overview for April 12

 

• During the Asian session, the euro was generally calm, and the EURUSD pair consolidated around 1.08800.
• After the pound tried to break above the MA200 moving average on March 23 and tried to start a stronger bullish trend. The opposite happened.
• The Office for National Statistics announced this morning that unemployment in Great Britain fell in the previous three months until February, and the number of vacancies rose to a new record.

 

EURUSD chart analysis

During the Asian session, the euro was generally calm, and the EURUSD pair consolidated around 1.08800. As the European session began, the euro began to weaken again, with a break below 1.08700. Pair re-tested the 1,085,000 level and confirmed bearish pressure on the chart. We are now looking at 1.08350 as potential support before visiting the 1.08000 level, this year’s low of March 7th. For the bullish option, we need new positive consolidation and growth above 1.09500. After that, we get support in MA20 and MA50 moving averages. Our next target is the 1,10000 level. An additional potential resistance at that level is the MA200 moving average. A good bullish momentum could bring us back above the March trend line if the pair crosses above 1.10500 levels.

GBPUSD chart analysis

After the pound tried to break above the MA200 moving average on March 23 and tried to start a stronger bullish trend. The opposite happened. The MA200 moving average proved to be a resistance, and we are still in that bearish pullback. Due to increased bearish pressure, the GBPUSD pair has also fallen below the MA20 and MA50 moving averages, and we are now testing a 1.30000 psychological level. Pair made a break below yesterday, forming a new lower low at 1.2900, after which it was in a voucher movement of around 1.30000. Slow bearish pressure could further lower GBPUSD, and our first target is the 1.29000 level. For the bullish option, we need positive consolidation that would be able to move the pair above 1.31000 levels. That move would take us above the trend line of resistance and moving averages MA20 and MA50. Such a move could instil additional optimism for the further recovery of GBPUSD. Data from Great Britain showed yesterday that the British economy grew by only 0.1% in February, which missed the market expectation of 0.3%. The economic slowdown with the British embargo on the import of Russian coal and oil shifts the pressure on the pound. By the way, the American currency is in a big rush towards all major currencies.

Market overview

GBP unemployment rate

The Office for National Statistics announced this morning that unemployment in Great Britain fell in the previous three months until February, and the number of vacancies rose to a new record.

The unemployment rate fell 0.2 % points from the previous quarter to 3.8 % in the three months to February.

At the same time, the employment rate remained largely unchanged at 75.5 % but remained below pre-pandemic levels. The number of vacancies grew to a new record 1,288,000 between January and March. However, the vacancy growth rate continued to slow.

Retail sales in the UK are retreating in March as consumer confidence has continued to weaken, a British retail consortium said on Tuesday.

Increasing costs of living and the ongoing war in Ukraine have diminished consumer confidence, the BRC executive director said. Moreover, households have yet to feel the full impact of the recent rise in energy prices and changes in national insurance.

There is also the potential for further disruption of the supply chain as China blocks key production and port cities. Finally, consumers are facing a huge challenge this year, and that is likely to affect retail consumption in the future.

The post EURUSD and GBPUSD charts overview for April 12 appeared first on FinanceBrokerage.

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