GBPUSD Near Major Resistance Levels

9 September, 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.


Source link  
Bank of England Faces Conundrum

On Wednesday, data released by the UK Office for National Statistics (ONS) showed average weekly earnings (excluding bonuses) rose...

UK Inflation at 5-Year High

The likelihood of a rise in UK interest rates, for the first time in a decade, gained momentum on Tuesday as UK CPI edged up from 2.9% to 3.0%...

US Inflation Disappoints

US Consumer Price Index data was released and failed to impress the markets. With US gasoline prices spiking, following the disruption caused by the recent Hurricanes...


Can CPI Follow PPI Lead?

In early Friday trading, the markets are relatively static as they wait, in anticipation, for today’s US inflation data that will potentially give confirmation...

Fed Minutes: Inflation Conundrum

USD broadly declined as the markets digested the release of last month’s FOMC meeting minutes. Many FOMC Members are still concerned...

UK output data falls but expectations rise

On Sunday, The Confederation of British Industry released their monthly indicator of output for UK manufacturers, retailers and service companies...


US Economy Growing Faster Than Forecast

Data released on Thursday indicated that the US economy grew at a faster pace in Q2 than expected. The US Commerce Department released...

New Fiscal Year Could See Changes

With many countries entering a new fiscal year in October, many investors are summarising this past year’s portfolio performance while setting new goals...

New US data did not add positive

Published data on construction activity in the US in August slightly exceeded expectations. The number of building permits reached...

  


Share: