Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable extends steep fall of past four weeks and probed below 1.22 handle to hit new 2022 low.
Weak UK GDP data, released today, added to negative sentiment, fueled by risk aversion that continues to inflate the US dollar.
Negative fundamentals dominate and so far counter signals from strongly oversold daily and weekly studies, however, some price adjustment should be anticipated in the coming sessions, in response to oversold conditions.
Upticks are expected to be limited and capped under 1.2400 zone (May 11 spike high / falling daily Tenkan-sen) to keep bears intact and offer better levels to re-enter strong bearish market.
Bears see no significant obstacles en-route to next targets at 1.2080/00 (Fibo 76.4% of 1.1409/1.4249 rally / psychological), with risk of deeper fall on violation of 1.20 pivot, remaining in play.
Res: 1.2250; 1.2300; 1.2375; 1.2400.
Sup: 1.2165; 1.2100; 1.2080; 1.2000.
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
EUR/USD rises toward 1.0800 on USD weakness
EUR/USD trades in positive territory above 1.0750 in the second half of the day on Monday. The US Dollar struggles to find demand as investors reassess the Fed's rate outlook following Friday's disappointing labor market data.
GBP/USD closes in on 1.2600 as risk mood improves
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold gathers bullish momentum, climbs above $2,320
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Three fundamentals for the week: Two central bank decisions and one sensitive US Premium
The Reserve Bank of Australia is set to strike a more hawkish tone, reversing its dovish shift. Policymakers at the Bank of England may open the door to a rate cut in June.