15 Dec, 2023
5 minutes
Daily Technical Analysis December 15th 2023
Introduction:
Welcome to our daily technical analysis of the financial markets, focusing today on GBP/USD and Crude Oil. Let's dissect the latest news, market trends, and crucial price levels to watch out for.
1. GBP/USD Analysis:
News Summary:
The Bank of England seems unwilling to acknowledge market expectations that it will cut interest rate in May next year. BOE policymakers played down weaker-than-expected wage and inflation data since November meeting, it was too early to conclude that service sector inflation or wage growth were on a firm downward path. The bank does not want to shift further towards an earlier rate cut, which would loosen financial conditions and undermine its efforts to curb inflation.
Trend Analysis:
We can see GBP/USD broke through 1.2700 and hit a recent high. The Pound rebound showed a slight decline in market expectation for Bank of England rate cut next year, however, the price has formed top divergence, the retracement would be happened in short term, so sell limit could be placed, stop loss is necessary.
Today's Key Price Levels:
Key Support Levels: [1.2640]
Key Resistance Levels: [1.2870]
Pivot Points [1.2800]
2. Crude Oil Analysis:
News Summary:
The perception of supply has shifted from deficit to oversupply in just a few months. Oil price has plunged 25% since September despite OPEC+ concerted efforts to anchor the benchmark and prevent free fall. Under normal circumstances, falling oil price will stimulate increased consumption. However, widespread skepticism surrounding the possibility of a surge in consumption has undermined traditional market dynamics.
Trend Analysis:
We can see crude oil touched bottom and then rebounded, the MACD double line and energy column formed a bottom divergence below zero axis. Oversupply and weak demand have cast a pall over the oil market, and it remains an open question whether global oil markets will continue to be mired in uncertainty. The sell limit can be employed, stop loss is compulsory.
Today's Key Price Levels:
Key Support Levels: [68.00]
Key Resistance Levels: [74.30]
Pivot Points [73.00]