Daily Technical Analysis

Introduction: 

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

1. GBP/USD Analysis: 

News Summary: 

The data showed that the annual rate of UK CPI dropped from 6.7% in September to 4.6% in October. That was the lowest level in two years and below the consensus estimate of 4.8%. This is a sharp decline in CPI, which confirms the downward trend in inflation due to year-on-year effects and lower energy prices. It means that the central bank is well positioned to start cutting interest rates in late 2024, but much depends on the strength of the labour market and economy.  

Trend Analysis:

 We can see GBP/USD declined after released data showed that British inflation cooled more than expected in October, strengthening expectations that the Bank of England will cut interest rates in the middle of next year. The price began to approach 48 hours moving average, and the MACD histogram bar shrank downward on H4 chart. The useful tactic is to set sell limit, stop loss is mandatory.   

Today's Key Price Levels: 

Key Support Levels: [1.2260] 

Key Resistance Levels: [1.2500]

Pivot Points [1.2430]

2. Crude Oil Analysis:  

News Summary: 

Oil price rebounded after US CPI data was weaker than market expectations, causing the US dollar index to plummet to two-month low, and the International Energy Agency raised its crude oil demand forecast. OPEC+ will hold a meeting at the end of November to release its forecast for the first half of 2024, which may further reduce supply.  

Trend Analysis: 

We can see oil price retreated after rising high, because the regional tensions in the Middle East may be easing and uncertainty over US oil inventories. Based on technical structure, the MACD double line has accessed below zero axis again, it is a sign of weak momentum, therefore, sell limit after price rebounding is suitable, stop loss is necessary.     

Today's Key Price Levels: 

Key Support Levels: [72.40] 

Key Resistance Levels: [80.00] 

Pivot Points [77.70]