Daily Market Report – GBP/USD Downside Clouded September 29, 2017

GBP/USD Bounced Back

Price increased in the yesterday’s trading session and tries to recover after the last day’s drop. GBP/USD stays in the green territory and should climb much higher in the upcoming days. The perspective remains bullish on the Daily chart despite the minor drop.

The pair had come down only to retest some broken levels before will climb much higher. It could move sideways on the short term and could try to recapture more directional energy before will climb towards new highs.

GBP/USD increased significantly in the second part of the day as the USDX plunged on the mixed US data. The USD bulls were disappointed by the Unemployment Claims unexpected increase, the Initial Claims were reported at 272K, above the 269K estimate and much above the 260K in the former reading period.

Price climbed higher and failed to reach and retest the upside line of the ascending channel and the first warning line (wl1) of the ascending pitchfork, signaling that the bulls are still in the game and could take full control again.

Remains to see what will happen tomorrow because the economic calendar is filled with high impact data that could shake the markets.

Price is somehow expected to approach and reach the upper median line (uml) of the red descending pitchfork. A failure to breakout above this level will announce an exhaustion and a potential leg lower.

Gold False Breakdown?

Price has dropped much below the confluence area formed between the warning line (WL1) and the long term 38.2% Fibonacci line, but failed to stay there and now is trading much above this support. Technically, the false breakdown will send the price very fast towards new highs. We’ll see what will happen tomorrow because the fundamental factors will take the lead.

USD/JPY Another Leg Lower

USD/JPY has found strong resistance and now seems poised to drop in the upcoming days. Has retested the warning line (wl1) and turned to the downside as the USD was punished by the USDX’s drop. Technically, it should drop further after the failure to close on the warning line (wl1) and after the false breakout above the median line (ml) of the minor blue ascending pitchfork.

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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