GBP/USD outlook: Drops after repeated rejections at daily cloud top

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable dips 0.3% in Asian/early European trading on Wednesday after a multiple failures to clear the top of daily Ichimoku cloud.

Long upper shadows on daily candles and narrowing ranges in past few sessions, confirmed significance of cloud top barrier, while diverging RSI added to early signals that bulls were running out of steam and warned of pullback.

Fresh bears cracked Fibo support at 1.2643 (38.2% of 1.2535/1.2709 upleg, reinforced by 10DMA), loss of which to signal further weakness and expose targets at 1.2600 (Fibo 61.8%) and 1.2570 (200DMA).

Daily indicators are heading south, and 14-d momentum is approaching the centreline, with break into negative territory to further weaken near-term structure.

Res: 1.2668; 1.2686; 1.2709; 1.2772.
Sup: 1.2622; 1.2600; 1.2570; 1.2535.

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.2735
2. R2 1.2716
3. R1 1.2698
PP 1.2679
1. S1 1.2662
2. S2 1.2643
3. S3 1.2625

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.