By Mexgroup.com

GBP/USD Strongly Bullish

GBP/USD edges higher on the Daily chart and is expected to reach new upside targets very soon. Price increases as the USDX drop aggressively again and approach the 91.64 previous low. The index will drop towards fresh new lows if will close below the mentioned static support.

USDX is trading in the red ahead of the ECB and ahead of the high impact US data. The greenback needs a strong support from the United States economy to be able to climb higher and to recover after the immense drop.

The ECB Press Conference will have an impact on the USD as well, a dovish speech will boost the USD and will punish the Euro. We’ll have to be patient to see what impact will have the US figures, the Unemployment Claims could increase from 236K to 245K in the previous week, the Revised Nonfarm Productivity may increase by 1.3% in the second quarter, beating the 0.9% estimate, while the Revised unit Labor Costs indicator is expected to increase by 0.3%.

Price goes higher as expected, the perspective is bullish and should hit new highs in the upcoming days. The next upside target will be at the first warning line (wl1) of the minor ascending pitchfork, where he may find temporary resistance again. We have a breakout underway, has managed to pass beyond the 1.3046 level, signaling that the buyers are very strong.

USD/CHF On A Declining Path

USD/CHF extends the bearish movement as the dollar index drops further. Price is going down after the retest of the warning line (up sloping red line)  and the 0.9634 level. Now is approaching the 0.9498 static support, a valid breakdown will confirm a drop towards the lower median line (lml) of the descending pitchfork and towards the 0.9440 horizontal downside obstacle. Only a rebound will send it towards the median line (ml) again.

EUR/CHF Another Breakout Attempt

EUR/CHF resumed the yesterday’s bullish candle and climbed above the WL2 and the WL4, but failed to stay there. Price had lost altitude in the last hours, so a false breakout will signal an overbought and a potential drop at least till will reach the upper median line (uml).

I’ve said in another article that the rate could resume the upside movement if will jump and will stabilize above the 1.1415 level.

By Olimpiu Tuns

Market Analyst

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The post Daily Market Report – GBP/USD Towards New Peaks September 07, 2017 appeared first on mexgroupblog.