Market Sentiment Stays Subdued, GBP Gives Back Recent Gains

Equities Slide, Safe Havens Shine, Pound Turns South

The US dollar traded higher against all but one of the other G10 currencies on Thursday and during the Asian morning Friday. It gained the most versus NOK, GBP, NZD, and AUD in that order, while it was found virtually unchanged against JPY.

DAX — Technical Outlook

Looking at the overall picture of DAX on the daily chart, we can see that the index continues to trade inside a rising channel pattern. The price recently took a hit and our cash index is currently closer to the lower bound of that pattern, however, until that lower side of the channel is broken, we cannot aim for further declines. Instead, if that bound holds, this might attract the bulls back into the game, potentially helping the index to climb back up again. For now, we will take a cautiously-bullish approach.

GBP/USD — Technical Outlook

This week, we saw GBP/USD shifting back below the psychological 1.3000 zone and coming close to one of its key support areas, at 1.2864, which is the current lowest point of this week and also marks the so-called “neckline” of a possible double top pattern. Such patterns tend to be bearish, however, a break of the “neckline” is required, before we could aim for lower areas. For now, we will take a neutral stance.

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