Cable – Risk of deeper pullback seen on break below converging 10/20SMA’s

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable closed in red on Tuesday and generated another negative signal after Harami pattern was formed on Fri/Mon. The pair came under additional pressure after yesterday's terrorist attack in Manchester, keeping the downside vulnerable. Technical studies on lower timeframes are weak with indicators on daily chart pointing lower that may shift near-term bias. First triggers and strong supports lay at 1.2945/35 (converging 10/20SMA's), loss of which would generate stronger bearish signal for fresh extension of pullback from highs at 1.3045 zone, as descending thick weekly cloud continues to weigh. Further easing would expose next pivotal supports at 1.2843/30, break below which is needed to confirm reversal. Conversely, break and close above 1.3000 barrier would neutralize immediate bearish threats. With no releases of economic indicators from the UK today, turns focus towards US housing data and more significant FOMC minutes, which may give more clues whether the Fed remains on track for rate hike in June.

Res: 1.3000; 1.3033; 1.3046; 1.3087
Sup: 1.2945; 1.2935; 1.2888; 1.2843

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.3094
2. R2 1.3064
3. R1 1.3013
PP 1.2983
1. S1 1.2931
2. S2 1.2901
3. S3 1.2849

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD clings to strong gains above 1.1850 on USD weakness

EUR/USD preserves its bullish momentum to start the week and trades above 1.1850. The US Dollar struggles to find demand ahead of Wednesday's critical January employment report and helps the pair continue to push higher.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold holds steady above $5,000

Gold builds on the gains it posted to end the previous week and holds steady above $5,000 on Monday. Data released over the weekend showed that the People's Bank of China extended its Gold buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.