Sample Category Title

The GBP/JPY, popular “Dragon” has formed a cup with handle pattern that is yet to be developed. The structure has formed exactly at M L5 Pivot Point. However, the presence of W H3 and W L3 pivots indicate that traders need to wait for further action. A close above W H3 – 143.61 is bullish and the price should reach 144.32 and eventually 145.52. A close below W L3 – 142.19 is bearish and targets are 141.49 and 140.29.

W L3 - Weekly Camarilla Pivot (Weekly Interim Support)

W H3 - Weekly Camarilla Pivot (Weekly Interim Resistance)

W H4 - Weekly Camarilla Pivot (Strong Weekly Resistance)

M H4 - Monthly Camarilla Pivot (Very Strong Monthly Resistance)

M L3 – Monthly Camarilla Pivot (Monthly Support)

M L4 – Monthly H4 Camarilla (Very Strong Monthly Support)

POC - Point Of Confluence (The zone where we expect price to react aka entry zone)

The US dollar continues to lose ground against the basket of major currencies. The US dollar index (#DX) closed the trading session with a slight decrease (-0.05%). The US and Mexico reached a trade agreement, as a result, tension in international trade relations has decreased, which supports the demand for risky assets.

Investors also closely follow the news about Brexit. Yesterday, Theresa May hastened to assure that even if the UK and the EU did not reach agreement after Brexit, this would not be the end of the world for the UK economy.

In addition, CB consumer confidence index was published in the US yesterday, which counted to 133.4 and was higher than the expected value of 126.7. Today, financial market participants expect data on US GDP. Pending home sales index will also be published in the US.

The "black gold" prices are consolidating after the decline the day before. At the moment, futures for the WTI crude oil are testing a mark of $68.40 per barrel. At 17:30 (GMT+3:00) the US crude oil inventories will be published.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.05%), #DIA (+0.02%), #QQQ (+0.15%).

At the moment, the 10-year US government bonds yield is at the level of 2.86%-2.87%.

The news feed on 2018.08.29:

Data on US GDP at 15:30 (GMT+3:00);

Pending home sales index in the US at 17:00 (GMT+3:00).

Cable bounced from session low at 1.2845 in early European trading, sidelining immediate downside risk on break lower.

Tuesday's strong upside rejection at pivotal barriers at 1.2935 zone (double-Fibo, reinforced by 30SMA and daily Kijun-sen), which left bearish daily candle with long upper shadow, turned near-term bias negative.

Dips were contained by 20SMA (1.2845) which marks pivotal support and keeps alive hopes of fresh upside attempts.

Daily techs show mixed signals, as momentum continues to strengthen, but positive impact is partially offset by flat slow stochastic/RSI.

Bullish scenario requires sustained break above 1.2935 pivots to signal continuation of recovery from 1.2661 (15 Aug low).

Conversely, bearish signal could be expected on close below 20SMA, which would signal lower platform at 1.2935 and risk test of key near-term support at 1.2799 (24 Aug trough).

Res: 1.2882, 1.2900, 1.2935, 1.3000
Sup: 1.2845, 1.2836, 1.2799, 1.2766

The Euro stands in red in early Wednesday’s trading, easing from new recovery rally high at 1.1733, after bulls failed on approach to key barrier at 1.1750 (daily cloud top / Fibo 38.2% of 1.2476/1.1300 / falling 100SMA).

The price holds for now within thinning daily cloud on mixed signals as momentum continues to strengthen, while slow stochastic created bear-cross and attempting out of overbought territory.

Overall bullish structure favors further upside, as concerns about US-China trade dispute keep the dollar under pressure, with consolidative / corrective phase expected to precede fresh advance.

Break above 1.1750 would open way towards next pivots at 1.1780/90 (Fibo 38.2% of 1.2555/1.1300 / 09 July lower top, break of which is expected to generate bullish signal for stronger correction of 1.2555/1.1300 (19Feb / 15 Aug fall).

Daily cloud base offers solid support at 1.1656, but risk of deeper pullback exists. Extended dips below 1.1656 would look for test of 55SMA (1.1613) and could travel towards strong support at 1.1568 (Fibo 38.2% of 1.1300/1.1733 ascend, reinforced by rising 10SMA).

Res: 1.1700, 1.1733, 1.1750, 1.1780
Sup: 1.1656, 1.1631, 1.1613, 1.1568

Pivot (invalidation): 0.7320

Our preference Long positions above 0.7320 with targets at 0.7365 & 0.7385 in extension.

Alternative scenario Below 0.7320 look for further downside with 0.7305 & 0.7285 as targets.

Comment The RSI is mixed to bullish.

Pivot (invalidation): 1.2945

Our preference Short positions below 1.2945 with targets at 1.2885 & 1.2855 in extension.

Alternative scenario Above 1.2945 look for further upside with 1.2985 & 1.3005 as targets.

Comment The RSI calls for a drop.

Pivot (invalidation): 0.9785

Our preference Short positions below 0.9785 with targets at 0.9740 & 0.9725 in extension.

Alternative scenario Above 0.9785 look for further upside with 0.9815 & 0.9835 as targets.

Comment As Long as 0.9785 is resistance, likely decline to 0.9740.

Pivot (invalidation): 111.10

Our preference Long positions above 111.10 with targets at 111.35 & 111.50 in extension.

Alternative scenario Below 111.10 look for further downside with 110.95 & 110.70 as targets.

Comment The RSI advocates for further advance.

Pivot (invalidation): 1.2885

Our preference Short positions below 1.2885 with targets at 1.2850 & 1.2830 in extension.

Alternative scenario Above 1.2885 look for further upside with 1.2910 & 1.2935 as targets.

Comment As Long as 1.2885 is resistance, expect a return to 1.2850.

Pivot (invalidation): 1.1680

Our preference Long positions above 1.1680 with targets at 1.1710 & 1.1730 in extension.

Alternative scenario Below 1.1680 look for further downside with 1.1655 & 1.1630 as targets.

Comment The RSI is mixed with a bullish bias.