The GBP/USD is trading in an upward channel on a 30 minute time frame. The pair is also trading above the 50 day (shown in green) but below 100 day (shown in yellow) moving averages which confirm that the bulls are still in control. If the price breaks the 100 day moving average towards the upside, this could be another bullish sign. The volatility for the pair remains low as the price is trading within the Bollinger band.
The EUR/USD fell from its resistance level on a 30 minute time frame as predicted. This resistance level was given in our analysis yesterday. The pair has found a support near the 20 day moving average which also lines up with the Fibonacci’s 61.8% retracement level however, the main support area could be near the 1.3497 mark which is mentioned below.
Struggle for direction in Europe; while the consumer Confidence data in focus, during the US session
Another day and another record high on Wall Street where the NASDAQ hit the 4000 mark after 13 years yesterday, but these gains were short lived as traders started to put the kid on their profit.
On the other hand, the 2% fall in the Brent prices which we experienced yesterday morning on the back of the Iranian deal went pretty much in full reverse in late afternoon, as the dust settled and traders saw the real picture. The reversal took place because the deal does not alter the prospects of supply versus the demand for Brent. Therefore, it is safe to say, that the gains which took place in the airline sector yesterday, could be under pressure today, if the above agreement has its merits which is supply side remains unaffected by this Iranian deal.