Downward Pressure on S&P 500 & FTSE 100. GBPUSD in Rising Wedge.

Welcome to this week’s Market Blast Technicals.

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I’m Brad Alexander and on behalf of Valutrades, today we will look at EURJPY, GBPUSD, the FTSE (UK100), and the S&P 500 (US500).

As we can see from this Daily chart on the S&P 500, price action is well below the 200-day moving average and the downtrend is quite clear.

The Stochastic Oscillator has turned down from overbought and price action might try to fill yesterday’s gap from the weekly open.

We may get more downward pressure from Jerome Powell this afternoon, and the FOMC meeting minutes tomorrow, as more Interest Rate rises are forecast meaning “Risk Off” for investors.

We see a similar situation with the FTSE100 as price action has just bounced off this upper trend line.

Also, with GBP getting slightly stronger against USD, this almost always puts downward pressure on the FTSE.

Having said that, we see a bearish Rising Wedge pattern forming on GBPUSD, along with the Stochastic Oscillator falling from overbought, so we will keep an eye on this.

We are also watching this Ascending Triangle on EURJPY, with price action at this level of resistance at 136.7, and the Stochastic Oscillator moving down from overbought.

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