The pound fell today after the release of the GDP for the third quarter which missed expectations, causing a massive drop in the sterling against majors. On the other hand, the dollar climbed against a basket of major currencies as indicated by the dollar index. The index rose to 75.29 compared with the opening at 75.06.
As regards to the euro-dollar pair, it is trading with a slight downside bias as seen over daily and 4-hour charts. The pair is moving in an overbought area according to the Stochastic Oscillator momentum indicator which may refer to a possible downside correction. The pair currently traded above the important psychological resistance level at 1.5000. The data released today in the euro zone showed improvement with manufacturing growing for the first time in near one year and a half, while services expanded at a more rapid pace. Meanwhile, the euro is traded at 1.5019 recording a high of 1.5060 and low of 1.4989, where the pair is supported by 1.5000 and faces the coming resistance of 1.5035.
As for the sterling-dollar pair, it is showing a sharp decline on the daily and 4-hour charts. The sterling fell tremendously after the lower-than-expected decline GDP data, losing near 350 pips from the recorded high at 1.6692. The pound reversed the prior gains generated this week. So far, the pound is trading at 1.6361 setting a low of 1.6352; while the coming support for the pair is seen at 1.6325 and the resistance is spotted at 1.6375.
With regard to the dollar-yen pair, it is showing an upside tendency over daily basis and the 4-hour charts. The pair inclined towards the strong resistance at 91.71 which represents 38.2% Fibonacci retracement level to the downside trend that started on August 10. Now, the pair is trading around 91.81 after hitting a high of 92.00 and a low of 91.26; while the pair is currently facing the coming support level at 91.71, while the resistance is spotted at 92.00.