GBP/USD: Further weakness expected - MIG Bank
Pound reversal from 1.6130, has extended below 1.6000 level, and according to Bijoy Kar technical analyst at MIG Bank, might continue lower over the next sessions to test 1.5853 level, where a higher low is favoured.
The current reversal is expected to extend to 1.5853 region, where, a higher low is favoured, says Kar: "GBP/USD is rising very gradually in the hourly timeframe, however, structure suggests that we are in the midst of a larger corrective phase, with scope for a further swing lower to test the 1.5853 region, where a higher low is favoured to form, for a fresh swing back towards 1.6167."
On a wider perspective, while above 1.5632, further strength is favoured, says Kar: "While above 1.5632 further strength is favoured. However, if this region fails to contain the current corrective phase, then the bias will turn negative again.source :- fxstreet.com
The current reversal is expected to extend to 1.5853 region, where, a higher low is favoured, says Kar: "GBP/USD is rising very gradually in the hourly timeframe, however, structure suggests that we are in the midst of a larger corrective phase, with scope for a further swing lower to test the 1.5853 region, where a higher low is favoured to form, for a fresh swing back towards 1.6167."
On a wider perspective, while above 1.5632, further strength is favoured, says Kar: "While above 1.5632 further strength is favoured. However, if this region fails to contain the current corrective phase, then the bias will turn negative again.source :- fxstreet.com
USD/CHF above 0.9000, approaches 0.9065 high
Dollar pullback from 0.9065 high yesterday has been contained at 0.8920, and the pair bounced up moderately in Asia, to accelerate its recovery on broad-based Dollar strength during European trading, regaining 0.9000 to reach 0.9045 high so far.
On the upside, above 0.9065, (Nov 8 high), the pair might encounter resistance at 0.9125 (Oct 11 high) and then 0.9290 (Oct 9 high). On the downside, support levels lie at 0.8925 (Nov 8 low/session low), and below here, 0.8860 (Nov 4/7 gap support) and 0.8810 (intra-day level).
The short term structure remains supportive of further rally above 0.9065, to target mid October highs at 0.9081/0.9120, says Slobodan Drvenica, analyst at Windsor Brokers: "This keeps short-term positive structure intact for fresh attempt at 0.9066, above which to open our targets at 0.9081/0.9120, mid October highs. Daily studies are emerging above midlines, with golden cross at 0.8725, underpinning the advance for possible extension towards key barrier at 0.9313 in short-term. source :- fxstreet.com
On the upside, above 0.9065, (Nov 8 high), the pair might encounter resistance at 0.9125 (Oct 11 high) and then 0.9290 (Oct 9 high). On the downside, support levels lie at 0.8925 (Nov 8 low/session low), and below here, 0.8860 (Nov 4/7 gap support) and 0.8810 (intra-day level).
The short term structure remains supportive of further rally above 0.9065, to target mid October highs at 0.9081/0.9120, says Slobodan Drvenica, analyst at Windsor Brokers: "This keeps short-term positive structure intact for fresh attempt at 0.9066, above which to open our targets at 0.9081/0.9120, mid October highs. Daily studies are emerging above midlines, with golden cross at 0.8725, underpinning the advance for possible extension towards key barrier at 0.9313 in short-term. source :- fxstreet.com
GBP/JPY down economic data and Italy
The pair is heading south for the second day in a row after the chaos unleashed by the Italian 10-year bond yields, hitting a fresh record above 7%, the “point of no return” as experts have affirmed.
The stock markets are being hammered in Europe as well as in the US, and the single currency is losing ground against its major rivals, trading below the key-level at 1.3650 against the greenback.
In the meantime, the Trade Balance figures was released in the UK, showing a slump of £9.80 bn against estimates of £8 bn, and lower than the previous reading of £8.6 bn.
At the moment of writing, the pair is retreating 0.62%, at 124.30
The pair is under pressure, and is approaching its support.
A breakout of the resistance level at 125.35 would open the door for 126.00 and then 127.25
The support levels are at 123.80, 122.65 and 122.50 source :- fxstreet.com
The stock markets are being hammered in Europe as well as in the US, and the single currency is losing ground against its major rivals, trading below the key-level at 1.3650 against the greenback.
In the meantime, the Trade Balance figures was released in the UK, showing a slump of £9.80 bn against estimates of £8 bn, and lower than the previous reading of £8.6 bn.
At the moment of writing, the pair is retreating 0.62%, at 124.30
The pair is under pressure, and is approaching its support.
A breakout of the resistance level at 125.35 would open the door for 126.00 and then 127.25
The support levels are at 123.80, 122.65 and 122.50 source :- fxstreet.com
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