Daily Market Report – GBP/USD Is The Rebound Completed? October 17, 2017

The GBP/USD decreased a little today, but looks undecided as the USDX is facing a tough resistance. Will be better to stay away right now because we don’t have any trading opportunity. Price is trading near crucial support and resistance level, so I hope that we’ll have a clear direction very soon.

You should be careful later as the Fundamental factors will take the lead and will drive the price, remains to see the direction. The US and the United Kingdom are to release high impact data, which will bring life on the currency market.

The Cable could receive a helping hand from the UK’s inflation data, the CPI is expected to increase by 3.0% in the previous month, while the Core CPI may increase by 2.7%, matching the 2.7% growth in the former reading period. You should keep an eye on the economic calendar today because is filled with significant data.

The GBP/USD failed to reach and retest the upside line of the up channel and failed to stay above the 1.3268 as well and now should hit the 250% Fibonacci line again. The perspective remains bullish as long as the rate stays above this line. Price has shown some exhaustion signs on the short term as the USDX has pushed the USD higher. Is very important to see what will really happen on the USDX because a further increase will send the rate tumbling.

EUR/USD On The Way Down

Price dropped and is almost to reach the median line (ml) of the descending pitchfork, where he may find temporary support. The current drop is natural after the false breakout above the median line (ml) of the minor ascending pitchfork. However, only a valid breakdown below the median line (ML) of the major ascending pitchfork will confirm a larger drop.

Gold Very Heavy

The yellow metal was rejected by the first warning line (WL1) of the major descending pitchfork and now could ignore the support from the warning line (WL1) of the ascending pitchfork. Gold has made a false breakout above the 38.2% retracement level and now is expected to reach the 50% level again. Only a valid breakdown below the SL will confirm a broader drop.

By Olimpiu Tuns – Market Analyst

I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.

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