Morning Insights 14th January

Simon Alagbe

Analyst

Instrument: GBPUSD

Intraday: Bearish

Technical Analysis

Preference:  Sell position is envisaged if price trades below 1.29701 with take profit at 1.29085

Alternative scenario: Buy position is envisaged if price trades above 1.29938  with take profit at 1.30424.

Fundamentals:

CPI (USD) 2:30 pm

Core CPI (USD) 2:30pm

Comment: The cable fell after weaker than expected data on the U.K industrial production and the GDP data, while the buck has seen steady growth in her economy. The CPI data coming out today would have a major impact on the currency for today.



Instrument: GOLD


Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 1541.67 with take profit at 1548.99

Alternative scenario: Sell position is envisaged if price trades above 1536.57  with take profit at 1527.24.


Fundamentals:

CPI (USD) 2:30 pm

Core CPI (USD) 2:30pm

Comment:  The instrument has been on a fall due to the strength of the dollar as well as the waning tension in the Middle East. The instrument is on a strong support region from where we expect some surge upward. Moreover, investors are expecting concrete details on the phase 1 deal for the US-SINO deal so a weak buy looks good for now.

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