GBPUSD

Resistance : 1.6610 - 1.6645 - 1.6700 - 1.6730 Support : 1.6500 - 1.6460 - 1.6413 - 1.6373

Rejected by 1.6600 resistance level which represents 23.6% Fibonacci level.

The British pound dropped back again below 23.6% Fibonacci level on the daily chart, which also represents a strong resistance level around 1.6600 - 1.6610.

By looking at the chart below, we can see that the pair fell back again early in the morning, to record as low as 1.6494 and still trading around this area 'till now. We have to watch the 1.6500 psychological support in the mean time.

UK BBA Mortgage Approvals came out today, showing less than expected improvement to 42.2K versus 42.1K last month, while the expectation was at 44.0K.

My view on the British pound remains the same; after the BOE Inflation hearing today they still need a weak pound to stabilize the economy, so I think that the British pound is ready to test 1.6470 followed by 1.6413 in the next trading sessions.

EURUSD

Resistance : 1.4950 - 1.5000 - 1.5055 - 1.5086 Support : 1.4900 - 1.4870 - 1.4835 - 1.4791

rejected by 1.5000 pychological resistance, supported by 100 MA.

The European currency also dropped back again, since the beginning of the European session early in the morning , to record as low as 1.4888.

By looking at the chart below, we can see that the pair tried to break below two important moving averages, the first one is 100 MA shown on the chart with the green line, but it hiked up again at 1.4880 area, representing a high demand area for the euro, the second one is 55 MA, the pair hikes back up again to close a clear 4 hour candle above that level.

Technically, this move shows that the pair is still supported, on other hand it is still trading in a range bound between 1.5050 and 1.4820 till now, but I still think that 1.5000 and 1.5050 should hold, at least till the end of this week.

USDCHF

Resistance : 1.0100 - 1.0150 - 1.0200 - 1.0260 Support : 1.0050 - 1.0000 - 0.9987 - 0.9922

Still trading within the major down trend channel.

There is nothing much to talk about USDCHF, as it still trading within our formation shown above on the chart.

The pair is still trading within the down trend channel, shown above on the chart with the green lines, and it tried to test the upper line on the channel early this morning, but dropped back again to trade below 1.0100 support level.

I think that as much as 1.0050 solid support level remain solid, this would give the pair a high possibility to take the chance and break out of the down trend channel, to start another new trend to the upside soon.

Gold

Gold is heading to 1200 USD by year's end.

The Gold prices continued to rise to new historical levels yesterday at 1171 USD per ounce.

By looking at the chart above, the Gold prices is testing 1170 resistance level, which I mentioned in yesterday's report. I think that once the pair broke the 1150 resistance level ( Bloomberg Interview Target in late September ) it could take us toward 1200 USD per ounce by year end.

Moreover, a lot of central banks are still concerned about the economic situation and the inflation numbers around the globe which led them invest in Gold as safe haven investment in the meantime.