Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable extends steep bull-leg into ninth consecutive day and cracks barriers at 1.2970/76 (weekly cloud top /11 Mar high) the last obstacles on the way to psychological 1.30 resistance.
Fresh weakness of the dollar in expectations of dovish Fed, push the pound further up and exposed targets at 1.3000/17 (round-figure/Fibo 76.4% 1.3514/1.1409), break of which would generate strong bullish signal.
On the other side, the risk of failure at 1.30 zone rises as daily studies are overbought and psychological barriers usually provide strong headwinds for bulls.
Traders await comments from Fed chief Powell about steep fall of the dollar, as his response could influence greenback's performance.
Cable may pull back if dollar regains traction on Powell's speech, but under current circumstances, dips are likely to be limited and provide better levels to re-enter bullish market. Firmly dovish Fed, which is widely expected scenario, could push pound through 1.3000/17 pivots that would expose peaks at 1.3199 (9 Mar) and 1.3209 (2020 high, posted on 31 Jan).
Res: 1.2979; 1.3000; 1.3017; 1.3050
Sup: 1.2952; 1.2911; 1.2862; 1.2838
Interested in GBP/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
AUD/USD drops toward 0.6500 after dismal Aussie Retail Sales, mixed China's PMIs
AUD/USD is extending losses toward 0.6500, hit by an unexpected drop in the Australian Retail Sales for March while China's NBS April PMI data came in mixed. Upbeat China's Caixin Manufacturing PMI data failed to lift the Aussie Dollar amid a softer risk tone and the US Dollar rebound.
USD/JPY holds rebound to 157.00 after Monday's suspected intervention-led crash
USD/JPY is trading close to 157.00, staging a solid rebound in the Asian session on Tuesday. The pair reverses a part of heavy losses incurred on Monday after the Japanese Yen rallied hard on probable FX market intervention by Japan's authorities. Poor Japan's jobs and Retail Sales data weigh on the Yen.
Gold price traders remain on the sidelines ahead of FOMC decision on Wednesday
Gold price remains confined in a narrow range as traders prefer to wait on the sidelines. Reduced Fed rate cut bets revive the USD demand and act as a headwind for the metal. Investors now await the FOMC decision and US macro data before placing directional bets.
BNB price risks a 10% drop as Binance founder and ex-CEO Changpeng Zhao eyes Tuesday sentencing
Binance Coin price is dumping, with the one-day chart showing a defined downtrend. While the broader market continues to bleed, things could get worse for BNB price ahead of Binance executive Changpeng Zhao sentencing on Tuesday, April 30.
FX market still on intervention watch
Asian foreign exchange traders will be particularly attentive to any signs of Japanese intervention on Tuesday, following reports of Tokyo's involvement in the market on Monday. This intervention action propelled the yen upward from its 34-year low of 160 per dollar, setting off shockwaves of volatility.