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MNI DAILY TECHNICAL ANALYSIS - GBP Through Notable Resistance

Price Signal Summary – GBP Trades Through Important Resistance

  • A bullish theme in S&P E-Minis remains intact and the contract traded to a fresh cycle high Monday. Price has cleared resistance at 5600.75, the Aug 1 high and this signals scope for an extension towards key resistance and the bull trigger at 5721.25, the Jul 16 high. Eurostoxx 50 futures are unchanged. The contract traded higher last week and price is holding on to its latest gains. The contract has pierced the 50-day EMA, at 4873.86. An extension higher would undermine the recent bearish theme and highlight a stronger reversal.
  • GBPUSD bullish conditions remain intact and recent gains have reinforced the current trend set-up. The pair has traded through two important resistance points; 1.3142/43, the Jul 14 ’23 high and the top of a bull channel drawn from the Oct 4 ‘23 low. USDJPY continues to trade below the Aug 15 high and firm resistance at the 20-day EMA is intact. The trend structure is bearish and moving average studies remain in a bear-mode set-up. A stronger reversal lower would refocus attention on key support at 141.70. A bull cycle in AUDUSD remains intact and Friday’s gains reinforce the current bullish condition. The latest move higher has cancelled a recent bearish theme. Price has cleared 0.6693, 76.4% of the Jul 11 - Aug 5 bear leg.
  • WTI futures have recovered from their recent lows and the contract traded sharply higher Monday. The move is considered corrective, however, price has breached resistance at $76.30, the 50-day EMA. Gold remains in a bull-mode condition and the yellow metal is trading at its recent highs. The recent breach of resistance at $2483.7, the Jul 17 high, confirmed a resumption of the primary uptrend. Note that moving average studies remain in a bull-mode set-up
  • Bund futures remain in consolidation mode. The trend condition is unchanged and the outlook remains bullish. 133.21, the Jun 14 high, was cleared on Jul 29, confirming a resumption of the uptrend. The trend condition in Gilt futures is unchanged, it remains bullish and the latest pullback still appears to be a correction. Note that the move lower has allowed an overbought trend reading to unwind. A resumption of bullish price action would signal scope for a climb towards the 101.00 handle. MNI (LONDON)

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Price Signal Summary – GBP Trades Through Important Resistance

  • A bullish theme in S&P E-Minis remains intact and the contract traded to a fresh cycle high Monday. Price has cleared resistance at 5600.75, the Aug 1 high and this signals scope for an extension towards key resistance and the bull trigger at 5721.25, the Jul 16 high. Eurostoxx 50 futures are unchanged. The contract traded higher last week and price is holding on to its latest gains. The contract has pierced the 50-day EMA, at 4873.86. An extension higher would undermine the recent bearish theme and highlight a stronger reversal.
  • GBPUSD bullish conditions remain intact and recent gains have reinforced the current trend set-up. The pair has traded through two important resistance points; 1.3142/43, the Jul 14 ’23 high and the top of a bull channel drawn from the Oct 4 ‘23 low. USDJPY continues to trade below the Aug 15 high and firm resistance at the 20-day EMA is intact. The trend structure is bearish and moving average studies remain in a bear-mode set-up. A stronger reversal lower would refocus attention on key support at 141.70. A bull cycle in AUDUSD remains intact and Friday’s gains reinforce the current bullish condition. The latest move higher has cancelled a recent bearish theme. Price has cleared 0.6693, 76.4% of the Jul 11 - Aug 5 bear leg.
  • WTI futures have recovered from their recent lows and the contract traded sharply higher Monday. The move is considered corrective, however, price has breached resistance at $76.30, the 50-day EMA. Gold remains in a bull-mode condition and the yellow metal is trading at its recent highs. The recent breach of resistance at $2483.7, the Jul 17 high, confirmed a resumption of the primary uptrend. Note that moving average studies remain in a bull-mode set-up
  • Bund futures remain in consolidation mode. The trend condition is unchanged and the outlook remains bullish. 133.21, the Jun 14 high, was cleared on Jul 29, confirming a resumption of the uptrend. The trend condition in Gilt futures is unchanged, it remains bullish and the latest pullback still appears to be a correction. Note that the move lower has allowed an overbought trend reading to unwind. A resumption of bullish price action would signal scope for a climb towards the 101.00 handle. MNI (LONDON)

FOREIGN EXCHANGE

Keep reading...Show less