Daily Market Report – GBP/USD Edging Lower October 02, 2017

GBP/USD On The Way Down

The currency pair drops further and ignored another static support. GBP is trading in the red also versus the Euro and versus the Yen, not only against the greenback. The pair is into a corrective phase on the Daily chart, remains to see how long this will be.

GBP/USD reached another downside obstacle, we’ll see if will have enough directional energy to resume the downside movement or will bounce back on the short term. Is very important to see what will happen on the USDX in the upcoming days, the index climbed above the 93.81 level, but failed to stay there and now is trading at 93.64 level. Only a valid breakout above the 93.81 level will confirm a further increase and a USD dominance, while a rejection will send the dollar in agony. The USDX is somehow expected to climb much higher in the upcoming period despite a minor drop.

The GBP/USD extends the sell-off and has touched the outside sliding line (SL) of the major descending pitchfork. Has ignored the 1.3268 static support and technically is somehow expected to approach and reach the median line (ml) of the minor descending pitchfork. However, a failure to reach the median line (ml) will send it towards the upper median line (uml) of the descending pitchfork.

Is expected to reach also the 250% Fibonacci line (ascending dotted line), which represents a very strong dynamic support.

Brent Oil Further Drop To Come

Brent drops towards the 55.81 yesterday’s low. A failure to make new lows will force the rate to climb towards the 250% Fibonacci line (descending dotted line again). Technically is somehow expected to drop further towards the downside line of the ascending channel. However, it could turn back to retest the median line (ML) before will drop further.

EUR/USD Is The Retreat Completed?

Price increased and erased the morning drops. Is trading in the green and approaches the median line (ml) of the descending pitchfork. A retest followed by a minor drop will signal a breakdown below the 1.1711 horizontal support. Price increased only because the USDX has decreased today, but it could still develop a minor Head and Shoulders pattern as long as will stay within the descending pitchfork’s body. Only a breakout from the descending pitchfork’s body will signal a further increase.

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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