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MNI DAILY TECHNICAL ANALYSIS - GBP Pullback Seen Corrective

MNI (LONDON) - Price Signal Summary – GBPUSD Pullback Considered Corrective 

  • A bullish theme in S&P E-Minis remains intact. However, this week’s sharp sell-off highlights the start of a corrective cycle. The pullback has resulted in a breach of the 20-day EMA and the pair has pierced support at the 50-day average, at 5520.21. Eurostoxx 50 futures have reversed course this week and a bearish tone - a correction - remains intact for now. The move down has resulted in a break of both the 20- and 50-day EMAs.
  • The recent pullback in GBPUSD is considered corrective and firm support to watch lies at 1.3069, the 20-day EMA. A clear break of this EMA would signal scope for a deeper retracement. Moving average studies are in a bull-mode position. USDJPY has traded lower this week and resistance around the 20-day EMA, at 146.15 today, remains intact. The trend condition is bearish, reinforced by moving average studies that are in a bear-mode position.AUDUSD is unchanged and remains above Wednesday’s low. A bull cycle is in play and the latest pullback is considered corrective. The pair has breached support at the 20-day EMA and this has exposed a more important support at 0.6676, the 50-day EMA.
  • The trend condition in Gold is unchanged and remains bullish. Moving average studies are in a bull-mode set-up and this continues to highlight a dominant uptrend. Furthermore, a bullish price sequence of higher highs and higher lows remains intact. WTI futures maintain a softer tone following this week’s sharp sell-off. The break lower resulted in a breach of key support at $70.88, the Aug 5 low. The clear break of this level confirms a resumption of the downtrend that started Apr 12.
  • Bund futures have recovered from Monday’s low and from levels just below support at the 50-day EMA, at 132.99. The contract is trading at this week’s highs. First resistance is 134.50, the Aug 22 high, where a break would strengthen a near-term bullish condition. Gilt futures have recovered this week and the contract traded higher again, yesterday. The move off Monday’s low signals the end of the recent corrective cycle. The trend direction is up and this is reinforced by a bullish moving average set-up.

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MNI (LONDON) - Price Signal Summary – GBPUSD Pullback Considered Corrective 

  • A bullish theme in S&P E-Minis remains intact. However, this week’s sharp sell-off highlights the start of a corrective cycle. The pullback has resulted in a breach of the 20-day EMA and the pair has pierced support at the 50-day average, at 5520.21. Eurostoxx 50 futures have reversed course this week and a bearish tone - a correction - remains intact for now. The move down has resulted in a break of both the 20- and 50-day EMAs.
  • The recent pullback in GBPUSD is considered corrective and firm support to watch lies at 1.3069, the 20-day EMA. A clear break of this EMA would signal scope for a deeper retracement. Moving average studies are in a bull-mode position. USDJPY has traded lower this week and resistance around the 20-day EMA, at 146.15 today, remains intact. The trend condition is bearish, reinforced by moving average studies that are in a bear-mode position.AUDUSD is unchanged and remains above Wednesday’s low. A bull cycle is in play and the latest pullback is considered corrective. The pair has breached support at the 20-day EMA and this has exposed a more important support at 0.6676, the 50-day EMA.
  • The trend condition in Gold is unchanged and remains bullish. Moving average studies are in a bull-mode set-up and this continues to highlight a dominant uptrend. Furthermore, a bullish price sequence of higher highs and higher lows remains intact. WTI futures maintain a softer tone following this week’s sharp sell-off. The break lower resulted in a breach of key support at $70.88, the Aug 5 low. The clear break of this level confirms a resumption of the downtrend that started Apr 12.
  • Bund futures have recovered from Monday’s low and from levels just below support at the 50-day EMA, at 132.99. The contract is trading at this week’s highs. First resistance is 134.50, the Aug 22 high, where a break would strengthen a near-term bullish condition. Gilt futures have recovered this week and the contract traded higher again, yesterday. The move off Monday’s low signals the end of the recent corrective cycle. The trend direction is up and this is reinforced by a bullish moving average set-up.

FOREIGN EXCHANGE

Keep reading...Show less