Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable remains in red in early Friday following Thursday’s bearish close after larger bulls lost traction on approach to 200DMA (1.3848).
Return below broken 100DMA (1.3798) and Fibo 76.4% barrier (1.3794) adds to initial signal of stall and shift near-term focus lower.
Weaker than expected UK retail sales data (Sep 0.2% vs 0.5% f/c m/m; -1.3% vs -0.4% f/c y/y) increased pressure on pound, warning of corrective pullback after the pair hit new one-month high (1.3834) earlier this week.
Rapid loss of bullish momentum on daily chart and stochastic reversing from overbought territory support scenario, but rising thick weekly cloud continues to underpin the action, with cloud top (1.3694) offering solid support.
Weekly close will the key, with penetration into cloud to further weaken near-term structure, while close above the cloud would signal that bulls remain in play and on track for renewed for renewed attack at 200DMA after shallow consolidation.
Res: 1.3798; 1.3834; 1.3848; 1.3891.
Sup: 1.3742; 1.3721; 1.3694; 1.3675.
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 remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.