Daily Market Analysis By FXOpen

Market Analysis: GBP/USD Bulls in Control as USD/CAD Faces Fresh Decline


GBP/USD started a fresh increase above 1.3500. USD/CAD declined and is now consolidating losses below 1.3800.

Important Takeaways for GBP/USD and USD/CAD Analysis Today

• The British Pound is eyeing more gains above 1.3500.
• There is a key bearish trend line forming with resistance at 1.3530 on the hourly chart of GBP/USD at FXOpen.
• USD/CAD started a fresh decline after it failed to stay above 1.3900.
• There is a connecting bearish trend line with resistance at 1.3755 on the hourly chart at FXOpen.

GBP/USD Technical Analysis


On the hourly chart of GBP/USD at FXOpen, the pair formed a base above the 1.3390 level. The British Pound started a steady increase above 1.3440 against the US Dollar, as discussed in the previous analysis.

The pair gained strength above 1.3465 and the 50-hour simple moving average. It even cleared the 1.3500 handle and tested 1.3530. It is now consolidating gains below 1.3530.

The pair is stable above the 23.6% Fib retracement level of the upward move from the 1.3446 swing low to the 1.3529 high. It seems like the bulls might aim for more gains. The RSI moved above the 50 level on the GBP/USD chart and the pair could soon aim for an upside break above a key bearish trend line at 1.3530.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

What Is ICT PO3, and How Do Traders Use It?


The ICT Power of 3 (PO3) is a structured approach to price action analysis that aims to interpret institutional market behaviour. It divides market movement into three distinct phases: accumulation, manipulation, and distribution. Recognising these phases may help traders assess potential areas of interest and align their strategies with broader market dynamics.

This article outlines the core principles of the Power of 3 framework, providing a detailed examination of how it is applied in the context of institutional order flow and market structure.

The ICT Power of 3 (PO3), or the AMD setup, is a strategic trading framework developed by Michael J. Huddleston, better known as the Inner Circle Trader. This approach revolves around three critical phases: accumulation, manipulation, and distribution, which collectively may help traders understand and anticipate market movements.

Accumulation Phase
During this phase, smart money or institutional investors accumulate positions within a price range, often leading to a period of low volatility and sideways movement. This stage sets the groundwork for future price movements by creating a base of support or resistance.

Manipulation Phase
The manipulation phase involves deliberate price moves by smart money to trigger stop losses and deceive retail traders. In a bullish scenario, prices may dip below the established range, while in a bearish market, prices might spike above the range. This phase is seen as being characterised by sharp, misleading price movements aimed at manipulating liquidity.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

What Is BOS in Trading? How Is a Break of Structure Used by Traders?


Understanding market structure is fundamental to anticipating directional bias and interpreting institutional behaviour. Within the Smart Money Concept (SMC) framework, one of the most critical structural models is the Break of Structure (BOS)?a key indication that the market may be transitioning from one trend phase to another.

A BOS occurs when price decisively breaks above a significant swing high or below a swing low, suggesting a potential shift in control between buyers and sellers. For traders, the BOS serves as a confirmation tool for trend reversals, which may help them identify potential entry points and align trade setups with higher-timeframe order flow.

In this article, we uncover the core principles of the Break of Structure and how to distinguish it from liquidity grabs or false breakouts.

Strong and Weak Swing Points
In Smart Money Concept trading, understanding the basics of market structure may be crucial, particularly when discerning between strong and weak swing points. These points are pivotal in analysing the current trend and play a significant role in identifying potential breaks in structure.

A strong swing point, whether it be a high in a downtrend or a low in an uptrend, is considered to be likely to hold if the price revisits the area. A bullish trend, for example, is denoted by a series of higher highs and higher lows. For the trend to remain, traders typically watch that the last higher low is not breached.

Conversely, a weak swing point is seen as vulnerable and more likely to be breached. In an uptrend, a peak or area of resistance is expected to be traded through, continuing the trend. 

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Alibaba (BABA) Shares Soar ~13% After Earnings Report


Alibaba published its second-quarter report on Friday morning. Although the company?s gross revenue came in below analysts? forecasts ($34.6bn vs $35.1bn), BABA?s share price surged by around 13% (to its highest level since March) as the market reacted positively to:

→ Faster growth in cloud services revenue, seen as key to the company?s success in monetising artificial intelligence, similar to Microsoft and Google.
→ Testing of a new processor designed to reduce reliance on Nvidia.



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

20 Currencies That Are Considered the Strongest in Africa


Africa?s currency landscape is as diverse as its economies. While many associate African currencies with volatility, several nations on the continent maintain strong units backed by robust fiscal policies and strategic ties to global markets. Understanding which currencies hold the most value can be useful for informed decision-making in foreign exchange trading, cross-border investments, and risk management.

In this article, we rank the 20 most valuable African currencies, based on their exchange rate against the US dollar, while exploring the economic factors that drive their performance.

The List of Currencies That Are Considered the Strongest in Africa
Below is the ranking of the 20 top-performing currencies in Africa. The US dollar remains the global benchmark for currency valuation, which is why this list is based on the exchange rates of African currencies against the US dollar.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Alphabet (GOOGL) Stock Price Soars By Around 8% After Court Ruling


At the end of August, we reported that Alphabet (GOOGL) stock price had reached a historic high, closing above $210. But today, the price is likely to climb to a new, significantly higher level. Yesterday, in after-hours trading, it surged by roughly 8%.

Why did Alphabet (GOOGL) shares rise?

The jump is explained by a court ruling in a case concerning alleged monopoly practices related to the Chrome browser. According to Investopedia, a federal judge ruled that the tech giant does not need to sell Chrome. This dispelled fears that Alphabet might have been forced to part with a core part of its business.

Interestingly, one of the factors behind the judge?s decision was the spread of AI solutions (such as ChatGPT and Perplexity), which offer competition to Chrome?s search and browsing functions.



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

What Are Fair Value Gaps and Liquidity Voids in the SMC?


Understanding the distinction between fair value gaps (FVGs) and liquidity voids may support traders aiming to interpret market structure with precision. Both concepts, fundamental to the Smart Money Concept (SMC) framework, reveal important insights into supply and demand imbalances. In this article, we?ll break down the mechanics of fair value gaps and liquidity voids, highlight their differences, and discuss how they may be applied in trading strategies.

Fair Value Gap (FVG) Meaning in Trading

A fair value gap, also known as an imbalance or FVG, is a crucial idea in Smart Money Concept that sheds light on the dynamics of supply and demand for a particular asset. This phenomenon occurs when there is a significant disparity between the number of buy and sell orders for an asset. They occur across all asset types, from forex and commodities to stocks and crypto*.

Essentially, a fair value gap in trading highlights a moment where the market consensus leans heavily towards either buying or selling but finds insufficient counter orders to match this enthusiasm. On a chart, this typically looks like a large candle that hasn?t yet been traded back through.

Specifically, a fair value gap is a three-candle pattern; the middle candle, or second candle, features a strong move in a given direction and is the most important, while the first and third candles represent the boundaries of the pattern. Once the third candle closes, the fair value gap is formed. There should be a distance between the wicks of the first and third candles.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.