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MNI DAILY TECHNICAL ANALYSIS - GBP Rally Reinforces Bull Theme

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Price Signal Summary – GBP Rally Reinforces Bull Theme

  • The trend condition in S&P E-Minis remains bearish and fresh cycle lows last week reinforced current conditions. Moving average studies are in a bear-mode set-up highlighting a dominant downtrend. Sights are on 5483.50, a Fibonacci projection. Eurostoxx 50 futures have recovered from their recent lows. The M/T trend direction remains up and the recent pullback is considered corrective. Support to watch is the 50-day EMA, at 5319.81.
  • The trend outlook in GBPUSD remains bullish and Monday’s positive start to this week’s session reinforces current conditions. Moving average studies remain in a bull-mode position, highlighting a clear dominant uptrend. USDJPY is trading higher this week, extending the correction that started Mar 11. The 20-day EMA has been breached and this signals potential for a climb towards resistance at the 50-day EMA, at 151.36. The bull cycle in USDCAD that started Feb 14 remains intact, and moving average studies reinforce this condition - they remain in a bull-mode position.  However, the latest pullback has exposed a near-term key support at 1.4242.
  • A clear uptrend in Gold remains intact and this week’s resumption of the uptrend reinforces current bullish condition. The yellow metal has delivered another all-time high and breached the psychological $3000.0 handle. A bearish condition in WTI futures remains intact and the latest recovery appears corrective - for now. Recent weakness resulted in a breach of $70.20, the Feb 6 low. This confirmed a resumption of the downtrend that started Jan 15.
  • Bund futures continue to trade inside a range and remain in consolidation mode for now. A bearish trend theme remains intact. A recent impulsive sell-off signals scope for an extension towards 126.28 next. The short-term trend outlook in Gilt futures remains bearish and gains are - for now - considered corrective. A resumption of the downtrend would pave the way for a test of 90.71, the Mar 6 low and a bear trigger.

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Price Signal Summary – GBP Rally Reinforces Bull Theme

  • The trend condition in S&P E-Minis remains bearish and fresh cycle lows last week reinforced current conditions. Moving average studies are in a bear-mode set-up highlighting a dominant downtrend. Sights are on 5483.50, a Fibonacci projection. Eurostoxx 50 futures have recovered from their recent lows. The M/T trend direction remains up and the recent pullback is considered corrective. Support to watch is the 50-day EMA, at 5319.81.
  • The trend outlook in GBPUSD remains bullish and Monday’s positive start to this week’s session reinforces current conditions. Moving average studies remain in a bull-mode position, highlighting a clear dominant uptrend. USDJPY is trading higher this week, extending the correction that started Mar 11. The 20-day EMA has been breached and this signals potential for a climb towards resistance at the 50-day EMA, at 151.36. The bull cycle in USDCAD that started Feb 14 remains intact, and moving average studies reinforce this condition - they remain in a bull-mode position.  However, the latest pullback has exposed a near-term key support at 1.4242.
  • A clear uptrend in Gold remains intact and this week’s resumption of the uptrend reinforces current bullish condition. The yellow metal has delivered another all-time high and breached the psychological $3000.0 handle. A bearish condition in WTI futures remains intact and the latest recovery appears corrective - for now. Recent weakness resulted in a breach of $70.20, the Feb 6 low. This confirmed a resumption of the downtrend that started Jan 15.
  • Bund futures continue to trade inside a range and remain in consolidation mode for now. A bearish trend theme remains intact. A recent impulsive sell-off signals scope for an extension towards 126.28 next. The short-term trend outlook in Gilt futures remains bearish and gains are - for now - considered corrective. A resumption of the downtrend would pave the way for a test of 90.71, the Mar 6 low and a bear trigger.

FOREIGN EXCHANGE    

Keep reading...Show less