GBPUSD intra-day analysis
GBPUSD (1.2266): GBPUSD continued to drift lower following the break below 1.2400. Yesterday’s construction PMI did not help in lifting the sentiment as data came out only slightly better than expected at 52.5 compared to 52.2. The focus will be on today’s services PMI which could see some continued improvement. The British pound was also hit by the fact that the Prime Minister lost the Brexit bill in the House of Lords. The currency continues to be hit by weak sentiment on the Brexit issue which could keep the markets subdued. GBPUSD will be looking to push lower towards the support level at 1.2200 in the near term; however, watch for a pullback as the Stochastics on the daily, and 4-hour chart remains strongly oversold.
USDJPY intra-day analysis
USDJPY (114.17): USDJPY broke past 114.00 resistance level, but the question is whether these gains can be maintained. On the 4-hour chart, price action is seen posting a reversal off 114.38 – 114.00 resistance level and could see a continued decline back towards 113.00 if the pullback persists. Therefore, it is ideal to expect further bullish continuation only above 114.38 while below this level there is a risk of a decline in prices towards 113.00. This view is also validated by the fact that there is a hidden bearish divergence on the 4-hour chart with prices making a lower high and the Stochastics printing a higher high.
XAUUSD intra-day analysis
XAUUSD (1232.35): Gold prices closed near the 1240 – 1235 support handle yesterday, and a bearish close is required to confirm the continuation to the downside. Watch for a potential bounce off the support level which could trigger a short term pull back in prices. On the 4-hour chart, price action is seen breaking out from the rising median line, but there is scope for a retest in prices to the upside back to 1250.00 unless gold resumes the declines to test the support at 1220 – 1217 region.
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