Daily Technical Analysis

Introduction: 

Welcome to our daily technical analysis of the financial markets, focusing today on GBP/USD and Gold. Let's dissect the latest news, market trends, and crucial price levels to watch out for.  

1. GBP/USD Analysis:

 News Summary: 

Britain may already be in recession after soaring interest rate and rising unemployment made households more cautious about spending. According to the definition of recession when GDP shrinks for two consecutive quarters, the probability of recession in UK in the second half of this year is 52%. The UK will release official GDP data on this Friday. A recession could increase the likelihood that the Bank of England will turn to interest rate cuts, especially if inflation falls sharply.  

Trend Analysis: 

We can see GBP/USD retreated after breaking through resistance, but it is still running above the 48 hours moving average on H4 chart. The UK economy will teeter between stagnation and mild contraction, but the latter is more likely, and output could fall more than expected, which would cause the Pound to be weak continually. The reasonable strategy is to set selling or sell limit, stop loss is necessary.   

Today's Key Price Levels: 

Key Support Levels: [1.2200] 

Key Resistance Levels: [1.2450] 

Pivot Points [1.2370]

2. Gold Analysis:  

News Summary: 

Although interest rate remains at 22 years high, gold price is keeping stable, so it needs to take a clear dovish signal from FED to rebound above 2,000. Gold has muted response to the FOMC meeting, it means some weakness in gold market that is supported by safe-haven demand from conflict in the Middle East. Assuming there is no significant escalation in the conflict, we may see price premium of the war dissipate in the coming weeks.  

Trend Analysis: 

We can see gold rebounded and followed by a correction, the unexpected nonfarm payroll data helped gold price return to 2000 mark, but the upside did not continue. According to the current trend, the resistance near 2009 is very strong, and price may continue to fluctuate in short term, the next support is near 1950. The possible option is to set sell limit, stop loss is mandatory.   

Today's Key Price Levels: 

Key Support Levels: [1950] 

Key Resistance Levels: [2000] 

Pivot Points [1980]