Richard Perry
Independent Analyst
GBP/USD
We have been seeing more fight from the Cable bulls recently, however on a renewed swing back to the dollar during US trading yesterday, a decisive negative candle formed to once more damage the prospects of a recovery. Losing over -100 pips from the day high yesterday will have been a disappointment, and seriously questions whether this is a recovery that can be trusted. Were the bulls to have been in control they would have been looking to find a higher low within the support band $1.2245/$1.2295, but this move seems to have failed before it has even seriously got going. The hourly chart shows a shallow uptrend of the past week and a half that certainly needs to hold (comes in today at $1.2200), but it is interesting that an intraday rebound into the close blast night is testing $1.2245 again. This will be an initial gauge today, otherwise the failing of the rally will begin to pressure the newly laid support at $1.2160 again. Momentum indicators are struggling to sustain the traction of their initial recovery positions and the bulls need to begin to form some positive daily candles again. Otherwise, once more we can add $1.2360 resistance to a list of failed bull moves.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.