GBPUSD Near Major Resistance Levels

September 9, 2016

GBPUSD

Yesterday the Bank of England announced the Inflation Report, stating that the BoE will implement further QE when it is necessary. The performance of the UK economy after the Brexit vote so far has been a bit better-than-expected. Yet we need more subsequent data to have a clearer picture.

The current price is near the previous high on 14-15 July. 1.3470 is a significant resistance level. The current price action is oscillating in the range between 1.3400 and 1.3300.
The daily Stochastic Oscillator is above 70, suggesting a retracement.

The resistance level is at 1.3370, followed by 1.3400 and 1.3470.
The support line is at 1.3300, followed by 1.3270 and 1.3230.

[gbpusd-d1-2]

The Dollar Index (DXY)

The Fed Beige Book was announced yesterday. It stated that although the labour market is tight and wage level is rising, this was not helping lift inflation. In aggregate, the US economy is expected to grow at a moderate pace in the following months.

DXY has turned bearish since 06th September on the weak ISM figure. The significant support level at 94.73 was broken earlier today, where the medium term trend line support situates. The bearish trend is ongoing. The next support line is at 94.55, followed by 94.35, 94.18 and 94.00.

The price is trading below the 8 and 20 EMAs, suggesting upside selling pressure.

The daily time frame Stochastic Oscillator is below 20, and 4 hourly RSI indicator is around 30, suggesting a rebound.

The newly formed resistance level is at 94.73, followed by 95.00, 95.20 and 95.40.

Keep an eye on the US Initial Jobless Claim and the Continuing Jobless Claims figures, to be released at 12:30 GMT.

Publication source
FxPro information  FxPro reviews

January 23, 2017
Can Supreme Court Ruling Help GBPUSD Remain Bullish ?
Tomorrow, Tuesday 24 January, around 09:30 GMT, the UK Supreme Court will release the Brexit lawsuit Ruling, on whether the UK Prime Minister Theresa May will need the UK parliament’s approval to invoke Article 50 of the Lisbon Treaty, to leave the EU...
January 20, 2017
Cautious EURUSD Ahead of ECB Press Conference
USD, and the US government bond yields, surged last night following Fed president Janet Yellen’s speech to the Commonwealth Club in San Francisco...
January 19, 2017
Is equilibrium out of reach?
Let’s check what’s going on with Oil before turning our attention to the Russian Ruble. “Black gold” is forming a reversal pattern next to the key level of 52.10. The only matter is that this pattern is above the horizontal level, but the 52.10 level can potentially become the neckline of our pattern...

FOREX.com Rating
XTB Rating
OANDA Rating
NPBFX Rating
FXCM Rating
Fort Financial Services Rating

TropicalTrade Rating
24option Rating
OptionTrade Rating
Binary Brokerz Rating
Anyoption Rating
Migesco Rating