GBP gets some support

GBP remains supported in the FX market

The FX market seems to be seeking direction, with the USD failing to regain some of last week’s losses. EUR remains under pressure as political dissatisfaction and unrest, especially in France tends to create uncertainty. UK’s employment data unexpectedly pointed towards a tightening of the UK employment market, supporting GBP and we highlight the release of UK’s CPI rates for September, tomorrow and a possibly faster-than-expected acceleration could provide support for the Sterling.

US stock markets tried to stage a comeback

US stock markets tried to stage a comeback yesterday as all three major indexes edged higher. Nevertheless, the bullish tendencies for US equities remain unconvincing for now, but a possible improvement of the market sentiment given the easing of the market’s hawkish expectations for the Fed, could provide a lift for US equities and conversely a possible risk off approach may intensify, given the market worries for the over-indebted AI companies, could weigh. Stock market focus is expected to be also on the earnings season with the SpaceX and Netflix about to release their earnings reports. 

Bullish tendencies for Oil prices

Bullish tendencies for oil prices seem to be simmering under the surface, despite the relative calmness yesterday and during today’s Asian session. Houthi attacks on Saudi infrastructure and hits on vessels at the Gulf region, tend to keep the oil market’s worries at high levels. Possible further escalation of tensions could lift oil prices further, while a possible easing of the oil market’s worries could weigh on oil prices.  

Gold’s price remains in a lazy sideways motion

Gold’s price continues to be rather stable despite the general uncertainty both in the FX market and the US equities markets. With the safe haven role of the precious metal being undervalued by the market, we continue to view the market’s expectations for the Fed, the path of US bond yields and gold purchases by central banks as possible factors that could affect gold’s price.

Other highlights for today

In today’s American session, we get the US construction data for September and later the US API weekly crude oil inventories figure. In tomorrow’s Asian session, we get Japan’s trade data , in the European session, the UK CPI rates, both for September.

Charts to keep an eye out

GBP/USD moved higher placing some distance between its price action and the 1.3300 (S1) support line.
We maintain a bullish outlook for cable’s price action, yet at the same time note that the RSI indicator despite rising is still near the reading of 50, implying that the market is rather neutral at the current stage. Should the bulls remain in charge, we may see GBP/USD’s price action breaking the 1.3510 (R1) resistance line, opening the way for the 1.3655 (R2) resistance level. Should the bears take over, we may see GBP/USD’s price breaking below the 1.3300 (S1) support level, and start aiming for the 1.3155 (S2) support line.

WTI remained relatively stable, yesterday and during today’s Asian session, well between the 94.30 (S1) support line and the 101.00 (R1)  resistance line. We note that the upward trendline guiding WTI’s price remains active hence we maintain yesterday’s bullish outlook. Should the bulls maintain control, we may see WTI’s price action breaking the 101.00 (R1) resistance line, and start aiming for the 108.85 (R2) resistance level. For a bearish outlook we would require a break below the prementioned upward trendline signalling an interruption of the upward movement and WTI’s price to continue to drop by breaking the 94.30 (S1) support level and start aiming for the 87.55 (S2) support level.

Calendar follows

GBP/USD Cash daily chart

• Support: 1.3300 (S1), 1.3155 (S2), 1.3010 (S3).
• Resistance: 1.3510 (R1), 1.3655 (R2), 1.3865 (R3). 

WTI Cash daily chart

• Support: 94.30 (S1), 87.55 (S2), 82.00 (S3).
• Resistance: 101.00 (R1), 108.85 (R2), 114.00 (R3).