Daily Market Report – GBP/USD needs a bullish spark August 21, 2017

GBP/USD Could Buyers Take It Higher?

GBP/USD Posted little gains today and needs a spark to be able to start another bullish momentum. Is trading in the green right, but looks undecided. I hope that we’ll have a trading opportunity very soon because looks like that the USD will decrease a little on the short term.

Price could increase as the USDX may slip lower in the upcoming days, the index is trading right below the 93.50 psychological level and could resume the Friday’s bearish candle. USDX remains under pressure as long as stays below the 93.81 static resistance, it could come down to recapture more directional energy before will start another bullish momentum.

The Cable increased today, even if the United Kingdom Rightmove HPI dropped by 0.9% in August, versus a 0.1% growth in the previous reading period.

Price narrows on the short term right on the upper median line (ML) of the major descending pitchfork, only a retest of this dynamic support will signal another leg higher. Is premature to say that we’ll really have a bullish momentum until will come to retest also the 1.2798 static support.

Support can be found at the second warning line (wl2) of the minor ascending pitchfork. We may have a sideways movement above the 1.2798 level in the upcoming period before we’ll have a clear direction.

A further retreat will be confirmed only after a valid breakdown below the 1.2798 static support, this scenario will take shape only if the USDX will breakout above the 93.81 static resistance.

Gold Setting Up For More Gains

Price has come down to retest the 38.2% retracement level, a minor consolidation here will attract more buyers, which will lead the rate towards new highs. We had a false breakout above the 23.6% retracement level and above the $1295 per ounce.

Is still trapped within a sideways movement, only a valid breakout from this range will confirm a major increase towards the lower median line (LML) of the ascending pitchfork.

Brent Oil Bounce Or Break?

Price dropped sharply after the retest of the 53.03 static resistance, however, a breakout is favored after the Friday’s impressive rally. Brent Oil is facing a tough resistance area, resistance can be found at the 61.8% retracement level and higher at the warning line (wl1) as well.

Only a breakout above these levels will send the rate towards the median line (ML) of the major ascending pitchfork.

By Olimpiu Tuns

Market Analyst

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