Today's market impulse 15/07/2016. What should we expect

Today we expect the market to keep the influence of yesterday's decision of BoE to keep unchanged the interest rates, which would act as short-term support of GBP. The price correction of the pound this morning, sends positive signals about opening long positions, even though they are risky and it is advisable to keep tight S/L. It is highly possible to see a new upward impulse on GBP/USD to test the resistence at 1.3478.

GBP/JPY also remains bullish in the short-term, as the price stepped on a support level at 141.00, where we have a hammer formation with potential for upward movement. However, it is advisable to keep the S/L at the bottom of the bar.

EUR/JPY and USD/JPY remain bullish, but here we wait for a small price correction in order to get better positioning in the wake of the price correction of the indices, which would have a negative effect on the currency pairs. Thus, new long positions should be opened after price correction levels at 117.41 and 105.53 subsequently. However, now it is also possible to open a long position, but the S/L should be below the new lows.

Even though stock markets do not show any negative signs, BoE's decision to keep the interest rate unchanged, will possibly have a negative impact on the stock markets due to their inverse relationship. It is quite possible to see profit taking in the next couple of hours and light indices price corrections. Today is also Friday, which also increases the possibility for profit taking of the weekly profits, as the weekly trend was bullish.

Caution is likely to become the main driving factor, which would lead to many investors closing their positions, as the last price correction is likely to be a larger one. It is quite possible to see a fall in the price of DAX to price levels around 9970 and CAC to price levels around 4322.

The sentiment in the US would largely depend on the financial reports from the companies that are publishing it today, but until the US market opens, it is still possible to go bearish. The first support level of DJIA is at 18460, and S&P 500's is at 2154.

The UKX trend  remains bearish, as price goes below 6641, which increases the possibility for a reduction.