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Key Price Signal Summary - Sterling Maintains Centre Stage In FX

MARKET INSIGHT
  • Cable yesterday traded through resistance at 1.3482, Sep 1 high and confirms a resumption of the broader uptrend that started in March. This has exposed 1.3514, Dec 13 high and 1.3547, a Fibonacci projection.
  • EURGBP maintains a bullish technical tone following this week's rally through trendline resistance drawn off the Sep 11 high. Firm support to watch though is 0.8974, the former trendline resistance. A break below this support would reinstate a bearish risk.
  • GBPCHF is volatile. If EURCHF is able to clear resistance at 1.0878, Sep 1 high and 1.0916, Jun 5 high, GBPCHF would likely be a main beneficiary in a bullish Sterling rally.
  • Trend and level summary for PM and Oil:
    • Gold remains bullish and is approaching firm resistance at $1848.8, Sep 18 and the recent breakout level.
    • Brent (G1) has resumed its uptrend. The next resistance and objective is $50.00 and $50.45, 61.8% of the Jan - Apr sell-off (cont). WTI (F1) bulls eye $48.07 - 0.764 projection of Apr - Aug rally from the Nov 2 low.
  • FI bearish pressure earlier this week is likely to still weigh on sentiment: Bund (Z0) key support is 173.47, low Nov 11 and the bear trigger. Gilts (H1) initial support is at 133.52, Dec 2 low. Treasuries (H1) support and downside trigger is at 133.52, Dec 2 low.

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