Slobodan Drvenica
Windsor Brokers
Cable is holding near one-week high at 1.2725, posted on strong post-Fed bullish acceleration, as weak UK retail sales data (May m/m -0.5% vs -0.1% prev/y/y 2.3% vs 5.1% prev) had mild impact on bulls.
Dovish Fed axed the greenback, while more positive tones which diminish fears of no-deal Brexit, further improved the outlook.
Bulls broke above falling 30SMA (1.2705), the last obstacle on the way to key barriers at 1.2763 (double-top/Fibo 38.2% of 1.3179/1.2505 fall), violation of which is expected to generate stronger bullish signal.
BOE MPC meeting is the key event for pound today, with traders expecting the central bank to reiterate its message of interest rate hike, despite Fed's strong dovish stance that further improves the sentiment.
Sterling advanced nearly 1.5% in three days on bounce from new low at 1.2505 (18 June), with sustained break of 1.2763 pivot to spark extension of recovery from 1.2505 and expose targets at 1.2842 (50% retracement of 1.3179/1.2505) and 1.2872 (weekly cloud base).
Converged 10/20SMA's offers solid support at 1.2658/54, which needs to hold and maintain bullish bias.
Res: 1.2725; 1.2763; 1.2810; 1.2842
Sup: 1.2654; 1.2631; 1.2606; 1.2559
Interested in GBPUSD 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 holds gains near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
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.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.