Pound surged up to 1.6643 early Europe against the greenback, posting there a fresh 2-week high, but worse than expected UK data dragged the pair quickly down to current levels: Markit Manufacturing PMI ticked down to 52.5 from previous 54.8, and below the expected 55.0.
The pair returned therefore below the daily descendant trend line coming from this year high, today at 1.6630, and consolidates rate below it with the 4 hours chart showing a mild positive tone, as per price above a slightly positive 20 SMA and momentum heading higher above 100. But the same chart shows the spike higher was short lived, with no candle opening so far above the mentioned trend line, which stands as critical level to break to confirm a move higher: a candle opening above it required, followed by an advance above mentioned daily highs, to confirm an extension up to 1.6670/80 price zone.
Below 1.6580 on the other hand, risk turns back to the downside, eyeing a retest of recent lows around 1.6530.
View Live Chart for GBP/USD
The pair returned therefore below the daily descendant trend line coming from this year high, today at 1.6630, and consolidates rate below it with the 4 hours chart showing a mild positive tone, as per price above a slightly positive 20 SMA and momentum heading higher above 100. But the same chart shows the spike higher was short lived, with no candle opening so far above the mentioned trend line, which stands as critical level to break to confirm a move higher: a candle opening above it required, followed by an advance above mentioned daily highs, to confirm an extension up to 1.6670/80 price zone.
Below 1.6580 on the other hand, risk turns back to the downside, eyeing a retest of recent lows around 1.6530.
View Live Chart for GBP/USD
Recommended Content
Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'