Market Overview

MultiBank Daily Market Report: GBP/USD Losing Altitude, July 11, 2017

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GBP/USD – Slips Lower
The currency pair is trading in the red right now and most likely will resume the minor retreat after the failure to climb above the 1.3047 previous high. Looks exhausted on the short term and could come down to test and retest some important support level. The greenback will drive the rate down if the USDX will have enough energy to stay above the 96.00 psychological level and to resume the minor rebound.
Price is driven by the technical factors right now, we have a poor economic calendar today, however, the United States figures could bring some action in the afternoon.

You can see that it is trading within an ascending channel on the daily chart, but failed to reach the upside line of this pattern, signalling an overbought. Has also failed to approach and reach the upper median line (UML) of the major descending pitchfork (this represents a major dynamic resistance). Is expected to reach and retest the 1.2798 static support and also the first warning line (wl1) of the minor ascending pitchfork, a valid breakdown below these levels will confirm a larger drop.
The upside movement will resume only if the rate will take out the major resistance from the UML, this scenario will take shape only if the USDX will drop below the 95.45 previous low.
EUR/CHF – Strongly Bullish
Price increased significantly in the last period and looks determined to hit fresh new highs, is attracted by an important confluence area on the short term. The Euro could receive a helping hand from the Italian Industrial Production, which is expected to increase by 0.5% in May, more after the 0.4% drop in the previous reading period.

Price extends the latest gains, has managed to break above the first warning line (WL1) of the major descending pitchfork, signalling a further increase. Maintains a bullish perspective as long as is trading within the minor ascending pitchfork’s body. Is attracted by the confluence area formed at the intersection between the upper median line (UML) of the ascending pitchfork with the median line (ml) of the minor ascending pitchfork, where he could find strong resistance again. A breakout above the mentioned resistance levels will attract more buyers on the short term.
EUR/GBP – Still Sideways
EUR/GBP continues to move sideways on the short term, is trapped below a strong dynamic resistance, but I hope that we’ll have a clear direction very soon. Price needs a bullish spark to be able to breakout from the minor range, is trading near the 0.8850 psychological level, a further increase is favored on the Daily chart.

Is located right below the second warning line (wl2) of the former minor descending pitchfork and above above the 100% Fibonacci level, only a valid breakout above the wl2 will confirm a further increase. The next major upside target will be at the UML. Another leg down will appear if will breakdown below the ML again.

By Olimpiu Tuns
Market Analyst
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Posted-In: euro PoundNews Technicals Forex Markets Trading Ideas

 

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