Daily Market Report – GBP/USD Correction To End Soon? August 11, 2017

GBP/USD Can Buyers Step In Again?

Price posted humble gains today as the USD is undecided on the short term after the USDX’s failure to close above the 93.81 static resistance. GBP/USD is pressuring an important support level, technically, is expected to rebound from this dynamic obstacle, but remains to see how will react after the United States data will be released later.

The US inflation numbers may bring a high volatility in the currency market, remains to see the direction because some good numbers will boost the greenback, which will resume the minor upside movement.

The United States CPI is expected to increase by 0.2% in July, more versus the 0.0% growth in June, could reach the highest growth on the last 3-months. While the Core CPI may increase by 0.2%, more compared to the 0.1% growth in the former reading period, the economic indicator could reach the highest level of the last 5-months and could lift the greenback.

Price dropped after the retest of the upside line of the up channel and now is retesting the first warning line (wl1) of the ascending pitchfork. A rebound will come only if the USDX will slide further because another bullish momentum will send the rate much below the dynamic support.

Support can be found at the upper median line (UML) of the ascending pitchfork as well. Price will be driven by the fundamental factors in the upcoming hours. The bias is bullish as long as the warning line (wl1) is unharmed.

EUR/CHF Losing Bearish Momentum

Price dropped today and tried to reach new lows, but the sellers weren’t strong enough. Has found support at 1.1271 level, much above the 1.1259 previous low and looks like that the corrective phase is at the end. It is trading much above the confluence area formed at the intersection between the WL3 with the upper median line (uml) of the minor ascending pitchfork.

You can see that has failed to close near it in the last two sessions, a retest of the confluence area or the upper median line (uml) will signal another leg higher.

EUR/JPY Bears In Control

Price extends the bearish momentum, a retest of the 38.2% retracement level and the median line (ml) of the minor descending pitchfork will validate a further drop in the upcoming period. The next downside target will be at the lower median line (lml) of the minor descending pitchfork. We have a major support at the 126.05 level as well.

By Olimpiu Tuns

Market Analyst

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