The recent rebound from multi-year lows has stalled today.The RSI has failed to continue its rise and paused just below 50, suggesting upside momentum has weakened. GBPUSD has staged a steady rally from a low of 1.3834 reached earlier this week (February 29) and rose steadily all week to reach a high of 1.4193 on Thursday. The key level at 1.4100 is now a target and a break below this would bring 1.4000 into sight. Failure to support at this level would indicate that this week’s corrective move has topped at 1.4193 and this would strengthen the bearish outlook. To the upside, resistance lies at 1.4248. This is where the kijun-sen line converges with the 50% Fibonacci retracement of the downleg from 1.4667 to 1.3834.
Looking at the daily chart, the moving averages are negatively aligned, with the 50-day moving average below the 100 and 200-day moving averages, supporting a bearish bias. MACD is trending down and is below zero, also supporting a bearish outlook. Meanwhile the tenkan-sen line is below the kijun-sen line, and the market is below the Ichimoku cloud, which highlights the bearish market structure.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.