HomeContributorsTechnical AnalysisGBPUSD Stutters and Fails to Continue Upward Impulse

GBPUSD Stutters and Fails to Continue Upward Impulse

The EUR/USD price was showing a confident upward movement on the background of rising geopolitical tensions after the North-Korean minister of foreign affairs declared the possibility of a new hydrogen bomb test in the Pacific Ocean in response to the speech by Donald Trump at the UN. The common currency also received some support from the Eurozone’s flash manufacturing PMI in September which increased to 58.2 against the 57.2 forecasted and from the flash services PMI which came in above expectations at 55.6.

German Chancellor Angela Merkel asked voters to come to the elections over fears of low attendances which may lead to significant changes in the result. This Sunday, parliamentary elections in Germany will be held and Merkel is likely to remain as the head of state.

The sterling was not able to keep rising and currently is falling partly due to price fixing following the previous rally and ahead of the weekend. GBP/USD also came under pressure from the CBI industrial order expectation index in the UK that reduced to 7 in September against the 13 forecasted.

The Canadian dollar weakened on the background of the disappointing core retail sales report in the country that showed growth of only 0.2% which is twice worse than the average prediction. Consumer inflation data also missed expectations and showed that the CPI increased by only 0.1% in August. Earlier the Bank of Canada increased interest rates, but the Canadian dollar has already lost part of those previously gained positions.

EUR/USD

The single currency quotes tested the 1.2000 resistance but was not able to break through it. In case of breaking through this line, the pair is likely to reach 1.2070. On the other hand, the closest objectives in case of a trend change may be 1.1925, 1.1825 and 1.1700. The chance of volatility growing till the end of the trading session is low.

GBP/USD

The GBP/USD rolled back after a couple of unsuccessful attempts to break through the strong resistance at 1.3600. Currently the price is trying to move beyond the limits of the rising channel and in case of fixing below its lower boundary we may see massive selling with potential targets at 1.3400 and 1.3250. The growth potential today is most likely to be restrained by 1.3600 line.

USD/CAD

The USD/CAD is moving within the 1.2235-1.2365 range. In case of gaining a foothold above 1.2365, the price is likely to reach the next goal at 1.2475. The MACD signal line crossed the zero mark which points to a possible price growth in the near term. Despite more chances for further growth, we do not exclude a price drop to the inclined support line.

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