Summary:
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GBPUSD broke above the downward sloping trend line but the pair encounter another obstacle
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EURUSD is trading in a key resistance zone
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US100 once again pulls back from the ATH
GBPUSD
GBPUSD broke above the downward sloping trend line being fuelled by positive Brexit sentiment. However, sellers appeared once the price reached the range of last upward correction move. Meanwhile the Brexit impasse drags on with the House of Commons approving the Withdrawal Agreement Bill, but rejecting Johnson’s programme motion. Area near the psychological 1.30 handle is now the key resistance to watch. In case of correction move, the pair could retest the earlier-broken trendline. On the other hand, breaking above the 1.30 handle could see upward move extend towards the resistance at 1.3330.
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GBPUSD W1 interval. Source: xStation5
EURUSD
An upward correction was launched on EURUSD at the beginning of this month. Mid-term resistance at 1.1180, marked with the upper limit of 1:1 structure, was tested at the beginning of this week. The pair failed to break above it during the first test, increasing chances for a downward correction to occur.. In case the price pulls back below the red zone, downward momentum could increase. In such a scenario, one cannot rule out a return to the 1.10 handle.
EURUSD D1 interval. Source: xStation5
US100
Last but not least, let’s move to one of the US indices - Nasdaq (US.100). The resistance zone marked with red colour remains crucial area for the index. Each attempt to break above met with bearish market reaction. As long as the price remains below the 8000 pts handle, correction towards the upward sloping trendline cannot be ruled out. However, one should keep in mind that once the aforementioned zone is finally broken, the index could accelerate upward move. However, from a technical point of view bears seem to be at an advantage as another bearish candlestick pattern was painted at the daily interval.
US100 D1 interval. Source: xStation5
