EURGBP – Fresh strength eyes key daily cloud top barrier at 0.8887

Slobodan Drvenica Windsor Brokers

EURGBP

The cross surged to nine-week high at 0.8850 today, on broadly weaker pound. The rally was also supported by technicals, completion of cup-and-holder pattern on the daily chart. The price action is showing strong scope for extension above thick daily cloud (spanned between 0.8549 and 0.8887), as fresh gains approached cloud's top at 0.8887 (also 50% retracement of larger 0.9472/0.8302 descend, reinforced by weekly Kijun-sen line). Sustained break above this strong barrier would trigger fresh acceleration towards 0.9000 zone (psychological barrier / near Fibo 61.8% retracement), as the pound stays under increased pressure on Brexit concerns. Meantime, dips from session low are so far holding above initial support at 0.8749 (broken Fibo 38.2% of 0.9472/0.8302), which should ideally contain corrective actions and guard pivot at 0.8664 (rising daily Tenkan-sen line).

Res: 0.8850; 0.8887; 0.8936; 0.9025

Sup: 0.8749; 0.8692; 0.8664; 0.8590

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.