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Technical Outlook

  

-GBPUSD shows a loss of momentum from the seller’s side. The buyers might enter the market, pushing the price up as an RSI Divergence is formed recently. 

-S&P500 gathers buyers, pushes the market up, and crosses the 200MA above. However, the price is still trading inside a bearish channel.

USA (USD): U.S. Producer Price Index (PPI)

The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

The previous Actual data was 0.7% while the forecasted data is 0.4%. The report is due Wednesday, October 11, 2023, 18:00 GMT.

GBPUSD Technical Analysis:

On the Chart, we could see a reversal pattern formation – Head & Shoulder Pattern. The pattern was formed on Daily, meaning it is of a higher significance. The price broke the neckline at $1.26000, which is also a physiological level on 5th Sept.

The price has already made lower highs and lower lows and slid down, forming a swing low at $1.20705. Here, we could also see a strong bullish RSI Divergence formation, meaning the bullish pressure is due. After the Divergence formation, the price made a higher high. The 200 MA is above the current price, meaning the price is still in a downtrend.

 As the price is still in a downtrend, traders should wait for the price to form a higher low for a valid upswing formation. The next swing high to keep a watch is around $1.23902.

Pivot Points: GBPUSD

  Support  Resistance
S11.2192R11.2207
S21.2187R21.2217
S31.2177R31.2222

USA (USD): U.S. Core Consumer Price Index (CPI)

The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

The previous actual data stands at 0.3%. The forecasted data is 0.2%. The report is due

Thursday, October 12, 2023, 18:00 GMT.

S&P500 Technical Analysis:

The S&P500 chart is a downtrend trading inside the bearish channel. The price, however, just crossed the 200MA moving up. The major top and bottom are at $4603.19 and $4222.52. There is a major support turned resistance at $4340.00. There, the price touched and reversed twice before, on June 20th and again on September 15th.

However, the price broke the level on September 21st, moving below. At this point, the price also broke the 200MA, signalling the seller’s momentum is high. Traders should wait for the $4340.00 level. If the price shows rejection at this level, it will be a valid break and retest pattern formation, which will be a good Sell.

However, if the price breaks the level moving up, wait for the retest, a successful support formation and a higher high formation.

Pivot Points: S&P500

  Support  Resistance
S14309.83R14327.63
S24299.43R24335.03
S34292.03R34345.43

Vantage does not represent or warrant that the material provided here is accurate, current, or complete, and therefore should not be relied upon as such. The information provided here, whether from a third party or not, is not to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any financial instruments; or to participate in any specific trading strategy. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. We advise any readers of this content to seek their own advice. Without the approval of Vantage, reproduction or redistribution of this information is not permitted.

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