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MNI DAILY TECHNICAL ANALYSIS - GBP/USD Bullish Conditions Firm

MNI (LONDON) - Price Signal Summary – GBP/USD Bullish Conditions Firm on Break Higher

  • S&P E-Minis are trading at their recent highs and a bullish theme remains intact. 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 have traded higher this week and the pair is holding on to its latest gains. The contract pierced the 50-day EMA, at 4868.98. An extension higher would undermine the recent bearish theme and highlight a stronger reversal.
  • GBPUSD bullish conditions remain intact. The pair has traded higher this week resulting in a break of key resistance at 1.3044, the Jul 17 high and a bull trigger. The clear breach of this hurdle strengthens a bullish condition and confirms a resumption of the uptrend. 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 MA studies remain in a bear-mode set-up. A stronger reversal lower would refocus attention on key support at 141.70, the Aug 5 low.USDCAD has traded lower this week, marking an extension of the bear cycle that started Aug 5. The move down undermines a recent bullish theme and has resulted in the break of a number of support points.
  • Gold remains in a bull-mode condition and this week’s fresh cycle high reinforces current conditions. The recent breach of resistance at $2483.7, the Jul 17 high, confirmed a resumption of the primary uptrend.WTI futures have been unable to hold on to recent gains and the contract has traded lower this week, extending the bearish reversal. The latest move down exposes key support at $70.88, the Aug 5 low and the bear trigger.
  • The trend condition in Bund futures is unchanged., it remains bullish. 133.21, the Jun 14 high, was cleared on Jul 29, confirming a resumption of the uptrend. Note that moving average studies are in a bull-mode position too. 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 101.78.

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MNI (LONDON) - Price Signal Summary – GBP/USD Bullish Conditions Firm on Break Higher

  • S&P E-Minis are trading at their recent highs and a bullish theme remains intact. 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 have traded higher this week and the pair is holding on to its latest gains. The contract pierced the 50-day EMA, at 4868.98. An extension higher would undermine the recent bearish theme and highlight a stronger reversal.
  • GBPUSD bullish conditions remain intact. The pair has traded higher this week resulting in a break of key resistance at 1.3044, the Jul 17 high and a bull trigger. The clear breach of this hurdle strengthens a bullish condition and confirms a resumption of the uptrend. 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 MA studies remain in a bear-mode set-up. A stronger reversal lower would refocus attention on key support at 141.70, the Aug 5 low.USDCAD has traded lower this week, marking an extension of the bear cycle that started Aug 5. The move down undermines a recent bullish theme and has resulted in the break of a number of support points.
  • Gold remains in a bull-mode condition and this week’s fresh cycle high reinforces current conditions. The recent breach of resistance at $2483.7, the Jul 17 high, confirmed a resumption of the primary uptrend.WTI futures have been unable to hold on to recent gains and the contract has traded lower this week, extending the bearish reversal. The latest move down exposes key support at $70.88, the Aug 5 low and the bear trigger.
  • The trend condition in Bund futures is unchanged., it remains bullish. 133.21, the Jun 14 high, was cleared on Jul 29, confirming a resumption of the uptrend. Note that moving average studies are in a bull-mode position too. 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 101.78.

FOREIGN EXCHANGE

Keep reading...Show less