Daily Market Report – GBP/USD hit new highs September 17, 2017

GBP/USD Rallied Aggressively

The GBP/USD has managed to extend the latest gains and seems poised to hit fresh new highs in the upcoming days. Is strongly bullish on the short term and should reach other upside targets very soon. The USD drops further as the USDX has slipped lower on the short term. The dollar index has found strong resistance at the 92.49 static obstacle and now is trading right below the 91.92 static support. Remains to see what will happen on the USDX because maybe the rate has come down only to retest some support levels before will really try to jump much higher.

The behavior could change on the USDX (could make higher lows), signaling that we may have a reversal on the Daily chart. We may have an accumulation on the USDX in the upcoming days, so is premature to talk about a rebound at this moment.

Price has edged higher and has managed to hit fresh new highs. Is trading much above the 150% Fibonacci line (ascending dotted line) of the minor ascending pitchfork, the next upside target will be at the lower median line (lml) of the ascending pitchfork.

GBP/USD rallied also because the United States data have disappointed again , the Core Retail Sales have increased only by 0.2%, less versus the 0.5% estimate and versus the 0.4% growth in the former reading period, while the Retail Sales dropped by 0.2% in August, even if the traders have expected to see a 0.1% growth.

USD/CHF False Breakout

You can see on the daily chart that we had another false breakout above the median line (ml) of the minor descending pitchfork. USD/CHF is trading in the red and could approach the 0.9498 static support again. The perspective remains bearish as long as the rate is trading within this descending pitchfork.

Could move sideways in the upcoming period because I don’t believe that will have enough directional energy to move in one direction.

EUR/CHF Rejected Again

EUR/USD dropped again after the yesterday’s bullish candle. The bulls seem exhausted on the Daily chart again after the failure to close above the warning line (wl1) and after the failure to reach the 1.1536 previous high. Could come down to retest the upper median line (uml) of the minor ascending pitchfork.

By Olimpiu Tuns

Market Analyst

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