Cable slips after Manchester attack; risk of deeper pullback seen on break below 10/20SMA pivots

Slobodan Drvenica Windsor Brokers

GBPUSD

Sterling moved lower in early Tuesday's trading after deadly terrorist attack in Manchester and slipped below Monday's low at 1.2965 after hitting high at 1.3003 in Asia. Failure to close above 1.3000 on Monday and confirm break weighs, as the price action remains capped by falling thick weekly cloud. In addition, bearish divergence on daily MACD/slow stochastic warns of possible further easing. Overall bullish sentiment has been soured by Manchester blast that may add on risk of deeper pullback. Converging 10/20 SMA's at 1.2939/26 mark pivotal support, loss of which would generate bearish signal for further easing that may risk extension through pivots at 1.2920/1.2890, towards key near-term supports at 1.2843/30.

Res: 1.3000; 1.3022; 1.3046; 1.3100
Sup: 1.2944; 1.2920; 1.2889; 1.2843

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

1. R3 1.3058
2. R2 1.3042
3. R1 1.3025
PP 1.3009
1. S1 1.2992
2. S2 1.2976
3. S3 1.2959

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 faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.