The UK pound on Thursday contrived to return to 1.55. From here the pound followed the euro against the dollar by falling to 1.5368. The lower limit of the channel was broken. A fall to the 135th degree to 1.5320 is expected. If we take the euro’s fall against the dollar into account, the pound’s closest target is 1.5207.

Yesterday’s Trading:
On Tuesday the euro/dollar was up to 1.1386 during European trades. This growth wasn’t strengthened, so the price returned to 1.1331 by the close of the European session. Janet Yellen didn’t mention monetary policy, so there was no reaction to her speech.

Yesterday’s Trading:
Monday saw the euro down to 1.1305 against the US dollar. Traders are selling euros as they expect the ECB to undertake additional measures on Thursday to combat low inflation.

Trading opportunities for currency pair: ECB representative Ewald Nowotny pushed the eurobulls into closing long positions. It’s highly likely that before the ECB’s Thursday meeting, we’ll see the downward movement on the euro resuming. I’ve picked out two price levels: 1.1250 and 1.1086 (by middle of November), with 1.0290 over the medium term.

Trading opportunities for currency pair: the euro is under pressure since market participants expect the ECB to extend its QE program. Due to these expectations and the stable oil price around 50 USD, expect the euro to fall to 1.4490 and below. A close of the weekly candle above 1.4930 will stop any fall.

Yesterday’s Trading:
The euro/dollar’s 5-day growth has ground to a halt. Trading in Europe saw the euro down due to the ECB’s Ewald Nowotny sticking his oar in and then the US stats came out in the evening which added to the fall. Nowotny suggested that the ECB should adopt additional measures to aid inflation growth. The US’ CPI for September was down slightly on August, but it remained unchanged when expressed annually. The labor market data turned out better than expected.

The UK pound hit the jackpot yesterday. During the day it strengthened on UK inflation data and in the evening it strengthened on weak US statistics. In the end it was up against the dollar by 2 figures. Since the pound/dollar reached the U3, I think we’ll see a correction after a renewal of the maximum, Furthermore, the pair has reached the trend line on the daily (see daily graph). If it doesn’t fall, it’s likely we’ll see the forming of a saw along the U3 (still two peaks). According to the price pattern on the daily, the pound could reach 1.56 against the dollar.

The pound/dollar renewed its maximum and fell to 1.5199 on the data. The pair is now trading beneath the LB. What can we expect today? From the LB with an MA heading downwards: we’re looking at a fall. At 11:30 EET, UK labour market data will be out. The data could make the pound swing and I wouldn’t be surprised if the pound heads back to 1.5370 if the data comes out strong. The news is more important than the technical side. On the forecast I’ve gone for a fall to 1.5222 and then a growth to 1.5285.