Daily Market Report – GBP/USD getting stronger on bullish pressure August 02, 2017


GBP/USD breakout favored

The GBP/USD is trading in the green on the daily chart and now is pressuring a strong dynamic resistance. A valid breakout will confirm a further increase on the short term, the perspective is bullish because is located in the buyer’s territory.

USD is still weak as the dollar index maintains a bearish perspective, the index has decreased today, but failed to drop below the 92.80 previous low. USDX could start a minor accumulation above the 92.49 major static support and could start another shy upside movement.

Right now the dollar index looks too oversold to drop much below the 92.49 static support, but we cannot sat for sure that we’ll have another leg higher in the upcoming weeks because the US data could ruin everything if will come in worse.

We’ll see what will happen later as the US is to release the ADP Non-Farm Employment Change, the economic indicator could increase from 158K to 187K in July, a positive report will help the greenback to bounce from the lows, but another disappointment could ruin the minor upside perspective.

You can see that is pressuring the upside line of the ascending channel, a valid breakout will send the rate towards the lower median line (lml) of the ascending pitchfork and higher towards the 1.3527 static resistance.

However a rejection from here will push the rate down again and could reach the warning line (wl1) again, where he could find support. The perspective is bullish after the retest of the upper median line (UML) of the major descending pitchfork.

A minor decrease could bring us a good buying opportunity, so right now we should stay away to see if we’ll have a breakout or not.

AUD/USD trading within an ascending channel

AUD/USD is trading within an ascending channel, is trapped between the upper median line (uml) and the first warning line (wl1) of the minor ascending pitchfork. Could increase again as long as stays above the upper median line (uml), only a drop below this dynamic support will open the door for more declines.

Brent Oil struggling to stay higher


Brent Oil plunged in the yesterday’s session, but failed to retest the sliding parallel line (descending dotted line) of the descending pitchfork, signaling that he could climb higher again. Is trading right above the $52.00 per ounce, should approach the 53.03 major static resistance again if will stay above this level. We could have a consolidation before will approach the near term targets, a retest of the uptrend line (ascending dotted line) will bring us a good buying opportunity.

By Olimpiu Tuns

Market Analyst

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