GBP/USD
Cable holds bullish bias despite multiple failures to clear strong barriers at 1.2500 zone (100DMA/Fibo 38.2% of 1.3381/1.1958 fall) which capped the action in past four days. Daily momentum remains strong and rising MA's (10/20/30/55) continue to underpin, but flat stochastic and RSI partially offset positive signals. Fresh optimism about Brexit deal adds to positive sentiment, however, the situation is still vulnerable, as the EU gave 12 days to UK PM Johnson to set out his new plan. UK retail sales came in line with expectations (m/m -0.2% vs -0.2% f/c) offsetting annualized figure (2.7% vs 2.9% f/c) and keeping the pound at the front foot. Bank of England is expected to keep interest rates unchanged at 0.75%, but markets will focus on signals about cb's next steps. Top of thick daily cloud provides strong support (1.2399) and the price is expected to remain biased higher while holding above here. Eventual break of 1.2500 pivots would spark fresh acceleration higher and expose target at 1.2669 (50% retracement of 1.3381/1.1958). Only break below daily cloud top would weaken near-term structure and signal correction.
Res: 1.2501; 1.2526; 1.2558; 1.2579
Sup: 1.2459; 1.2438; 1.2400; 1.2379
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.