Daily Market Report – GBP/USD Eyeing More Gains September 05, 2017

GBP/USD Rejected By Dynamic Support

Price is trading in the green and looks determined to approach and reach fresh new highs in the upcoming period. Technically, is expected to climb much higher as it’s located in the buyer’s territory. The dollar is losing altitude as the USDX is still under massive selling pressure. USDX needs a bullish spark to be able to climb much higher in the upcoming period.

The index hovers right above the 92.49 static support, a rejection will signal a USD potential increase, but is premature to talk about this as the fundamental factors will have a significant impact in the afternoon.

The Cable increases even if the United Kingdom Services PMI dropped from 53.8 points to 53.2 points in August, has come much worse compared to the 53.5 estimate. The BRC Retail Sales Monitor increased by 1.3%, more versus the 0.9% estimate.

Price increased and erased the yesterday’s losses and should reach and retest the 1.3046 static resistance. GBP/USD is expected to resume the upside movement after the failure to close the former gap down.

Technically should approach and reach at least the 1.3266 previous high. Resistance can be found at the first warning line (wl1) of the ascending pitchfork’s body, where he may find temporary resistance again.

The false breakdown below the upper median line (UML) have attracted more buyers, which are trying to drive it towards fresh new highs.

EUR/USD Undecided

Price changed little today, but maybe the United States Factory Orders will bring life on this pair. The economic indicator is expected to drop by 3.3%, a better report will lift the greenback. Technically is somehow expected to climb much higher after the false breakdown below the median line (ml) of the minor descending pitchfork. Could come higher to retest the upper median line (UML) before will make a crucial decision.

NZD/USD Falling Wedge?

Price rallies and resumes the yesterday’s bullish candle. You can see that the price action has developed a Falling Wedge pattern, but this is far from being confirmed. NZD/USD climbed above the 50% retracement level and is almost to touch the upside line of the Falling Wedge pattern.

Only a breakout followed by a minor consolidation above the 50% Fibonacci level will validate it and a bullish momentum.

By Olimpiu Tuns

Market Analyst

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