Slobodan Drvenica
Windsor Brokers
GBP/USD
British pound fell to a record low vs dollar in Asian session on Monday, in extension of last Friday’s sharp fall, when the pair was down 3.6% for the day in the biggest daily drop since 10 Nov 2021.
Cable spiked through 1985 low at 1.0520 to hit new all-time low at 1.0348, deflated by strong risk aversion on growing uncertainty and signals that the Fed will remain in strong hawkish mode, while confidence in Britain’s plan to stabilize the economy by lowering taxes and increasing borrowing, started to fade, adding to prevailing negative sentiment.
Although the cable bounced back to 1.07 zone in early European trading, as traders collected some profits on signals from deeply oversold daily studies, overall structure remains bearish, as the pair is pressured by deteriorating fundamentals and negative technical studies.
Cable fell 5% last week and is on track for another strong monthly fall (the biggest monthly loss since June 2016 – the post-Brexit fall).
We look for sustained break below 1985 low to signal bearish continuation, as p parity level already came in focus.
Broken psychological 1.10 support reverted to solid resistance, reinforced by falling daily Tenkan-sen, which should ideally cap extended upticks.
Res: 1.0845; 1.0914; 1.1000; 1.1211.
Sup: 1.0600; 1.0520; 1.0348; 1.0200.
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
USD/JPY off lows, stays pressured near 142.50 ahead of BoJ policy decision
USD/JPY has bounced off lows but remains pressured near 142.50 in the Asian session on Friday. Markets turn risk-averse and flock to the safety in the Japanese Yen while the Fed-BoJ policy divergence and hot Japan's CPI data also support the Yen ahead of the BoJ policy verdict.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV
Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD (RUSD) stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.