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Daily Market Report – GBP/USD eyeing a crucial break July 14, 2017

By Mexgroup.com

GBP/USD likely to test the dynamic resistance

Price increased on Thursday and looks to have enough energy to reach new highs, surges thanks to a weaker dollar. Approaches a major dynamic resistance after the failure to retest the 1.2798 static support.

Continues to move somehow sideways on the short term, maintaining a bullish perspective on the short term as long as the short term uptrend line remains intact. Cable edges higher as the dollar index stay much below the 96.00 psychological level, only a USDX’s rally will force the GBP/USD to turn to the downside again. USDX could move sideways on the short term, but remains to see if this will be an accumulation or a distribution movement.

We may still have a Falling Wedge on the USDX, all he needs is a bullish spark from the United States economy, which could come today if the US data will come in line with expectations or better. I want to remind you that a poor US data will send the greenback tumbling.

GBPUSD

GBP/USD could finally reach and retest the upper median line (UML) of the major descending pitchfork, which represents a very strong dynamic obstacle. Is trading within an ascending channel, so the perspective remains bullish.

The failure to reach and retest the 1.2798 static support and the first warning line (wl1) of the ascending pitchfork has signalled that the buyers are still very strong and could drive the rate towards new highs. The behavior has changed on the short term when has started to make higher lows, but the sentiment remains unchanged as long as is trapped within the major descending pitchfork’s body.

GBP/USD signalled an exhaustion when has failed to reach the 1.3047 previous high, but remains bullish as long as is trading above the warning line (wl1), only a drop below this level will confirm an important drop.

USD/JPY undecided

We had some volatility on the USD/JPY on Thursday, right now will be better to stay away from this pair because we don’t have a clear direction on the short term. Continues to move sideways on the short term, was rejected by a resistance area and now is into a corrective phase, but remains to see how long this will be because has touched a dynamic support.

USDJPY

The greenback lost significant ground versus the Yen after the false breakout above the 23.6% retracement level, the current retreat is natural after the failure to reach the warning line (WL3), we’ll have a perfect buying opportunity only if the rate will jump and will stabilize above the WL3 and above the 23.6% retracement level.

Brent Oil poised to approach the $50 / barrel

Brent Oil

Brent Oil is trading in the green and tries to take out the major dynamic resistance from the upper median line (UML) of the major descending pitchfork. A further increase will be confirmed only after a valid breakout above the 50% retracement level. Could increase further after the failure to stabilize below the 46.50 psychological level.

By Olimpiu Tuns

Market Analyst

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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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