Market forecast: Brent oil, Cable & Gold – Oanda

Craig Erlam Senior Market Analyst at OANDA sees little reason to expect the major producers would freeze or cut output anytime soon and details the technical and fundamental picture for GBP/USD and Gold.

Key points:

Brent – Renewed tensions between Iran and Saudi has squashed hopes of major producers reaching output/cut freeze agreement.

Cable – in a slow grind lower, gyrating 1.30 levels… 1.28-1.29 is a key support, which if breached would signal people have lost confidence about the resilient UK economy

Gold – range bound - $1300-1350. Lower highs suggest potential for a bearish move Eventual break higher could be seen as Fed may hold rates unchanged in Dec due to a potential mini crisis in China, Deutsche Bank mess.