20.04.201809:16 Forex Analysis & Reviews: Trading plan for 20/04/2018

The currency market in Asia produced a rather calm session. USD/JPY is trying to come out of consolidation, the pressure is affecting currency from Antipodes. The pound can not rise after the blow from the president of BoE Carney. The stock market is in a correction following Wall Street. China's indexes are adjusting their latest strength, Shanghai Composite is down 1.6% and Hang Seng is down 0.6%. The weaker climate came from Wall Street, where the SP500 lost 0.57%.

On Friday 20th of April, the event calendar is light in the important data release. The main event of the day would be the Canadian data release in the form of CPI, Core Retail Sales, Trimmed CPI data. It is worth to notice that there is IMF Metting during the whole day as well.

GBP/USD analysis for 20/04/2018:

The pound broke down after the comments by the president of the Bank of England Mark Carney hit the financial newswires.Carney said in a BBC interview last night said that the interest rate will take "probably" place this year, but any hikes will be gradual. He added that the remaining Brexit decisions to take will determine the rate of increase. Carney's words were perceived as a more dovish position than his earlier statements, which sent GBP/USD down by a whole figure down to 1.4080.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market is dropping heavily this morning despite the oversold conditions. The 61% Fibo support had been violated, so the current slide down is the biggest correction in the whole upward swing. The technical support at the level of 1.4098 has been violated as well, so now it will act as the nearest resistance for the price. The next important technical support is seen at the level of 1.4000 (round psychological level) and 1.3982 - 1.3965 zone. The chances that the short-term down trend will reverse by the end of the week are very low.