GBP/USD consolidates its rebound below 1.2500

Fundamental Overview:

GBP/USD is sustaining its minor gains below 1.2500 and has recovered from its three-month low reached during Friday’s European trading hours. The pair profits from a widespread US Dollar decline, although gains from the rebound could be limited by a cautious market atmosphere.

GBP/USD had fresh bearish pressure early on Thursday in the European session, falling below 1.2500 to its lowest point in three months. Although the pair is oversold according to the near-term technical picture, the risk-averse market environment may make a steady rebound difficult to achieve.

The Pound Sterling was pulled down by the cautious remarks made by Bank of England (BoE) officials on the policy outlook, which caused the GBP/USD exchange rate to decline.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 1.2493 | Negative Crossover | Bearish
• MA 20: 1.2558 | Negative Crossover | Bearish
• MA 50: 1.2662 | positive Crossover | Bullish

Simple:

• MA 5: 1.2481 | Negative Crossover | Bearish
• MA 20: 1.2583 | Negative Crossover | Bearish
• MA 50: 1.2641 | positive Crossover | Bullish
  
  

RSI (Relative Strength Index): 34.75 | Oversold Zone | Bearish

Stochastic Oscillator: 27.6 | Selling Zone | Bearish

Resistance And Support Levels :

• R1: 1.2506 | R2: 1.2587
• S1: 1.2440 | S2: 1.2302

Overall Sentiment: Bearish | Order Type: Sell

Trade Suggestion: Stop Sell: 1.2423 | Take Profit: 1.2341 | Stop Loss: 1.2485

Despite a weaker US Dollar, EUR/USD holds gains above 1.0700.


Fundamental Overview:

In the European session on Friday, the EUR/USD is maintaining recovery advances above the 1.0700 mark. Alongside the yields on US Treasury bonds, the US Dollar maintains its corrective downward movement. Risk aversion and a data-light economic calendar may impede the recovery.

The EUR/USD fell once again, closing at close to 1.0700, its lowest daily finish in three months. The Euro continues to seem fragile as the US Dollar retains a strong position, and the bias is still plainly to the downside. The US economy’s results strengthened the dollar, which also benefited from a cautious market tone.

According to Eurozone data, employment increased by 0.2% in the second quarter (unrevised), but GDP was downgraded from 0.3% to 0.1%. According to a different report, Germany’s industrial production fell by 0.8% in July, which was more than the 0.5% loss that was predicted. Germany will release the official Consumer Price Index (CPI) data for August on Friday.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 1.0712| Negative Crossover | Bearish
• MA 20: 1.0758 | Negative Crossover | Bearish
• MA 50: 1.0817 | positive Crossover | Bullish

Simple:

• MA 5: 1.0706 | Negative Crossover | Bearish
• MA 20: 1.0773 | Negative Crossover | Bearish
• MA 50: 1.0821 | positive Crossover | Bullish
  
  

RSI (Relative Strength Index): 36.97 | Selling Zone | Bearish

Stochastic Oscillator: 33.92 | Sell Zone | Bearish

Resistance And Support Levels :

• R1: 1.0733 | R2: 1.0780
• S1: 1.0692 | S2: 1.0567

Overall Sentiment: Bearish | Order Type: Sell

Trade Suggestion: Stop Sell: 1.0671 | Take Profit: 1.0581 | Stop Loss: 1.0744

AUD/USD Considering cautious markets, the upside remains capped below 0.6400.

Fundamental Overview:

In Friday’s Asian trading, AUD/USD is trying to rebound, although it is still restrained below 0.6400. Despite a risk-averse market environment due to China’s uncertainties, the pair is supported by recent dollar selling.

Australian exports decreased by 2% in July, while imports rose by 3%, according to data released on Thursday. The surplus in the trade balance was less than anticipated. Additionally, August’s Chinese trade figures came in close to forecasts and demonstrated indications of stabilization following months of decreases. While imports fell by 7.3%, less than the market expectation of a 9% decrease, exports fell by 8.8% from a year earlier, less than the anticipated decline of 9.5%.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 0.6386| Negative Crossover | Bearish
• MA 20: 0.6411 | Negative Crossover | Bearish
• MA 50: 0.6442 | positive Crossover | Bullish

Simple:

• MA 5: 0.6381 | Negative Crossover | Bearish
• MA 20: 0.6425| Negative Crossover | Bearish
• MA 50: 0.6427 | positive Crossover | Bullish
  
  

RSI (Relative Strength Index): 44.2 | Neutral Zone | Neutral

Stochastic Oscillator: 39.28 | Selling Zone | Bearish

Resistance And Support Levels :

• R1: 0.6402 | R2: 0.6458
• S1: 0.6457 | S2: 0.6269

Overall Sentiment: Bullish | Order Type: Sell

Trade Suggestion: Stop Sell: 0.6343 | Take Profit: 0.6269 | Stop Loss: 0.6402

Early losses are made up for in the USD/JPY, but intervention fears limit the upside as the USD declines.

Fundamental Overview:

Following the release of Japan’s final GDP data, USD/JPY sees renewed buying. Despite a minor USD decline, bulls are hesitant to place new wagers because of intervention fears. The path of least resistance appears to be upward, according to the Fed-BoJ policy difference.

Kanda warned against the recent decline in the value of the Japanese Yen (JPY) and said that if speculative movements in the currency market persist, authorities won’t rule out any possibilities. The USD/JPY pair has fallen because of this announcement.

Investors are likely to pay close attention to the impending US data releases. Later in the North American session, the US S&P Global PMIs and the US ISM Services PMI for August are expected to be released. These data releases will provide insightful information on the US economy now and may help to clarify the direction of the USD/JPY pair.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 147.29 | Negative Crossover | Bearish
• MA 20: 146.87 | Positive Crossover | Bullish
• MA 50: 146.09 | positive Crossover | Bullish

Simple:

• MA 5: 147.31| Negative Crossover | Bearish
• MA 20: 146.64| Positive Crossover | Bullish
• MA 50: 146.21 | Positive Crossover | Bullish
  
  

RSI (Relative Strength Index) 49.04| Buying Zone | Bullish

Stochastic Oscillator: 48.9 | Buy Zone | Neutral

Resistance And Support Levels :

• R1: 147.80 | R2: 150.39
• S1: 146.48 | S2: 145.05

Overall Sentiment: Bullish | Order Type: Buy

Trade Suggestion: Stop Buy: 148.33 | Take Profit: 150.25 | Stop Loss: 147.22

Elsewhere in the Forex Market

NZD/USD up 0.51% to 0.5904. The EUR/JPY up 0.09% to 157.67. The USDCHF is down 0.11% at 0.8916. USD/CAD is down 0.13% at 1.3669, EUR/GBP is down 0.01% at 0.8574, USD/CNY is up 0.12% at 7.337, AUD/SEK is up 0.26% at 7.1231, at the time of writing.

Key Economic Events & Data Release Today:

(JPY) GDP (QoQ) (Q2) Actual 1.2%, Forecast 1.5%, Previous 0.7% at 05:20.

(EUR) German CPI (MoM) (Aug) Actual 0.3%, Forecast 0.3%, Previous 0.3% at 11:30.

(CAD) Employment Change (Aug) Forecast 15.0K, Previous 5.5% at 18:00.

(USD) FOMC Member Williams Speaks at 01:00.