This morning we saw the release of the UK Markit Manufacturing PMI for October, was 54.3, slightly lower than expectations of 54.5, and the previous figure of 55.5.
GBPUSD has rebounded with strong bullish momentum, after testing the short term major support line at 1.2150 last Friday. It was helped by the Bank of England Governor, Carney’s announcement of his intention to stay until June 2019, also the weakening of the dollar as a result of Clinton’s email scandal.
GBPUSD broke the near term major downtrend line resistance this early morning, and further tested another near term major resistance level at 1.2270, yet retraced, as the selling pressure above the level is heavier.
The 4 hourly Stochastic Oscillator is above 70, be aware of a retracement.
The current price is still holding above the downtrend line. Whether the price can keep on holding here, will likely depend on the US ISM Manufacturing PMI and ISM Price Paid (Oct) figures, to be release at 14:00 GMT today. We can expect that it will cause volatility for the major currency pairs.
With better-than-expected figures, GBPUSD will likely fall and break the downtrend line support.
With lower-than-expected figures, GBPUSD will likely rally and test the resistance levels.
The resistance level is at 1.2250, followed by 1.2270 and 1.2300.
The support line is at 1.2220, followed by 1.2200 and 1.2180.
Gold prices have been bullish and moving upwards since 7th October.
Gold prices surged this morning helped by Clinton’s email scandal, market concerns about the US presidential election and risk-off reasons.
The resistance level at 1280.00 was broken with strong bullish momentum this morning.
It further tested the short term major uptrend line resistance, where the resistance level at 1285.00 converges, the selling pressure is heavier at this level, be aware of a retracement.
The 4 hourly Stochastic Oscillator is above 90, suggesting a pullback.
The resistance level is at 1285, followed by 1290 and 1295.
The support line is at 1280, followed by 1278 and 1275.
The US ISM Manufacturing PMI and ISM Price Paid (Oct) figures, to be release at 14:00 GMT today, will cause volatility for gold prices.
With better-than-expected figures, gold prices will likely fall and test support lines.
With lower-than-expected figures, gold prices will likely rally and test the resistance levels.