Action Insight Daily Report 10-24-22

Sterling Trades Higher as BoJo Quits Leadership Race; Three Central Banks to Meet This Week

Sterling is the better performer in Asian session today. It's supported by news that former Prime Minister Boris Johnson withdrew from party leadership contest on Sunday, even with enough support to make the final ballot. The development left business friendly Rishi Sunak, a former Finance Minister, as a favorite to replace outgoing Prime Minister Liz Truss. That would give some political stability, at least until a general election.

Dollar and Swiss Franc are also firmer on mixed market sentiment. Japan Nikkei followed the strong rebound in the US on Friday. But Hong Kong HSI is down as much as -5%, as reaction to the result of China's 20th Communist Party Congress, where President Xi Jinping cemented absolute power. China's Shanghai SSE and Singapore Strait Times are also down. Yen softens as impact of last week's intervention faded. Commodity currencies are on the soft side while Euro is mixed.

Technically, one focus is on 1.1393 minor resistance in GBP/CHF. Break there will resume the near term rebound from 1.0183 for 61.8% projection of 1.0183 to 1.1283 from 1.0893 at 1.1573. Such development, if accompanied by break of 1.1494 resistance in GBP/USD and 0.8577 support in EUR/GBP, would indicate more persistent rebound in the Pound.

Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.1134; (P) 1.1225; (R1) 1.1388; More...

Range trading continues in GBP/USD and intraday bias stays neutral. Further rally is in favor as long as 1.0922 minor support holds. On the upside, break of 1.1494 will resume the rise from 1.0351 to 61.8% projection of 1.0351 to 1.1494 from 1.0922 at 1.1628. On the downside, below 1.0922 will turn bias back to the downside for 1.0351 low instead.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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