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.CBP/USD Analysis:  

News Summary: 

Bank of England is likely to keep interest rates unchanged for a long time until there are enough signs to justify multiple cuts, but once the cuts begin, they could be deeper than the market expects. The market has underestimated the extent of possible rate cuts over the next two years, with current expectations of only 85 basis points. However, the latest economic data shows that the UK economy is on the verge of recession and BOE members may soon start voting for interest rate cut.  

Trend Analysis: 

We can see GBP/USD fell after rebounding on H4 chart. Geopolitical uncertainty is prompting investors to turn to US dollar for safety, with attractive swap rates bolstering the US dollar's position. On the other hand, the market is keeping attention on 1.2000 mark, a breakthrough of it could open the door for a pullback to 1.1850. As a result, the sell limit is reasonable option, stop loss is necessary.   

Today's Key Price Levels: 

Key Support Levels: [1.2000] 

Key Resistance Levels: [1.2200] 

Pivot Points [1.2170]

2. Gold Analysis:  

News Summary: 

Despite some lingering effects, safe-haven demand has been supported by political uncertainty and debt concerns. Gold regains the 2,000 mark that has not been touched for the past two months. The rise in gold also reflects the growing risk that the US economy faces a potential debt spiral, as rising interest rate means rising borrowing costs, increasing demand for more capital.  

Trend Analysis: 

we can see gold is moving within a very steep ascending channel, which not only highlights the strength of the current rally, but also the need for oscillation, finding support above 2,000 could be a sign of running towards the highs around 2,050. Hence the buy limit could be employed to deal with risk of conflict escalation, stop loss is mandatory.   

Today's Key Price Levels: 

Key Support Levels: [1970] 

Key Resistance Levels: [2020] 

Pivot Points [1900]