In the world of forex trading, understanding fundamental analysis is key to making informed investment decisions. Let’s break down what this means using a recent example:

During Asian trading hours, the British Pound (GBP) depreciated against the US Dollar (USD), hovering around the 1.2800 level. This movement in the GBPUSD currency pair was influenced by various factors, notably economic data releases and market sentiment.

In this case, the United Kingdom didn’t have any significant economic reports scheduled for release on this particular day. However, the previous day saw the United States publishing Producer Price Index (PPI) data that surpassed expectations. This unexpected uptick in PPI numbers strengthened the US Dollar, causing the GBPUSD pair to decline.

For investors, understanding the impact of economic data releases and events on currency pairs is crucial. By staying informed about key economic indicators like PPI, GDP, inflation rates, and employment data, traders can anticipate market movements and potentially capitalize on profitable opportunities.

In this scenario, traders who were aware of the higher-than-expected PPI numbers from the US could have taken advantage of the GBP’s decline against the USD. By selling GBPUSD positions at the right time, investors could have potentially profited from the subsequent downtrend in the currency pair.

Technical analysis

Pound - US Dollar Analysis Technical analysis 15/03/2024

Time Frame: 1 hour

GBPUSD Support & Resistance Table – 15/03/2024

Support & ResistanceLevelExplanation
Resistance 21.2788Daily R2
Resistance 11.2766Daily R1
Support 11.2708Daily S1
Support 21.2686Daily S2

GBPUSD Indicator Table – 15/03/2024

IndicatorSignal
SMA 20Sell
SMA 50Sell
SMA 100Buy
MACD( 12;26;9)Neutral
RSI (14)Sell
Stochastic ( 9;6;3)Sell

GBPUSD Indicator / Period Table – 15/03/2024

Indicator / PeriodDay – SellWeek – BuyMonth – Buy
MACD( 12;26;9)NeutralBuySell
RSI (14)SellBuyNeutral
SMA 20SellBuyBuy

GBPUSD 15/03/2024 – Reference Price : 1.2736

SELLSimple Moving AverageBuy (1)Sell (2)Technical Indicators – OscillatorsBuy (0)Sell (2)

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