The European equity session is confined by the weakness in the Chinese economic data. We have too much anxiety and the medicine is not working and this is creating a worrisome environment. The People Bank of China instigated another easing measure yesterday by lowering the RRR ratio by 0.5%, but today’s currency reaction has faded all that effort.
The GBP/USD pair bounced from OUR Identified support zone on a 4 hour time frame. The support zone was given in our analysis on the 29th Feb and the risk mentioned was 36 pips and the price has moved in profit of 90 pips by touching the mark of 1.3960.
EUR/USD: The pair is trading below its downward trend line on a 4 hour time frame. The next support is near the 1.0710 level and the resistance is 1.1062.
USD/JPY: The pair is moving in a side way pattern on a 4 hour time frame. The near term support is at 109.60 and the resistance is at 115.83.
GBP/USD: The pair has bounced from our Identified Support zone (given on the 29th Feb) on a 4 hour time frame. The next resistance is at 1.4167 and the support is 1.3685.