By Lukman Otunuga, Research Analyst, FXTM
.jpg)
The GBPUSD remains under extreme pressure below 1.50 from an appreciating Dollar, while the impact of the Federal Reserve’s historic decision to raise US rates for the first time in almost a decade has depressed prices further. This pair is heavily bearish and with sentiment towards the Sterling facing abrasion from the Bank of England’s clear reluctance towards raising UK interest rates, the GBPUSD is vulnerable and open to further losses.
Investor attraction towards the pound continues to diminish as ongoing concerns around the static rate of inflation growth in the UK fuel the fears that the BoE will push back raising interest rates deep into 2016. The Sterling/Dollar currently trades below 1.49 and if the final revision of GDP for the United States in the third quarter exceeds expectations on Tuesday, then sellers may be encouraged to use this opportunity to send prices lower towards 1.47.
From a technical standpoint, there have been consistently lower lows and lower highs which make this pair technically bearish. Prices are trading below the daily 20 SMA and the MACD has also crossed to the downside. Previous support around 1.49 may act as a dynamic resistance which should encourage sellers to send prices lower towards 1.47.
Gold experiences a technical bounce
Gold experienced a very aggressive appreciation during trading on Monday with prices ploughing through layers of resistance consequently hitting a daily high of 1081.50. Regardless of recent gains, fundamentally the precious metal remains heavily bearish and this relief rally may offer an opportunity for bearish investors to push prices lower. With US interest rates having increased for the first time in almost a decade, the bears have been offered an opportunity to install another round of selling momentum into this zero yielding metal before the end of the year. Further Dollar appreciation may act as a catalyst which should encourage sellers to send prices back down towards 1046.
From a technical standpoint, Gold has found itself in a very wide range. There is rough resistance just below 1090 and a layer support around 1046. Prices are trading above the daily 20 SMA but the MACD is still deep into the downside. A breakdown below 1063 may provide the momentum for a further decline towards 1046.
NZDCHF: The NZDCHF is technically bullish. Prices are trading above the daily 20 SMA and the MACD has also crossed to the upside. This upside momentum may take the NZDCHF to the next relevant resistance based at 0.6850.
CADCHF: The CADCHF is heavily bearish as there have been consistently lower lows and lower highs. Prices are trading below the daily 20 SMA and the MACD has also crossed to the downside. A further decline towards 0.700 may be expected as long as prices can keep below 0.7200.
For information, disclaimer and risk warning note, visit: www.ForexTime.com
FXTM is an international forex broker regulated by the Cyprus Securities and Exchange Commission (CySEC), and FT Global Limited is regulated by the International Financial Services Commission (IFSC)
