Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable is trading within a narrow range around 1.24 handle in European session on Monday, extending near-term directionless mode.
Bulls were capped by the base of descending weekly cloud (1.2455) and so far unable to register a clear break above 1.2400, but hold grip, as the price continues to move above ascending 10DMA (currently at 1.2371), which tracks the action since Jan 6 and marks solid support.
January action is on track to end in another long bullish candle (fourth straight month of gains), which is a bullish signal, though offset by weekly bearish Doji, overbought conditions and fading bullish momentum on weekly chart.
Daily techs remain in full bullish setup, but the action lacks strength for final push higher, awaiting fresh signals.
Traders eye key events this week – Fed and BOE rate decisions, which could provide direction signals.
The US central bank is widely expected to further slow the pace of tightening and raise its interest rate by 25 basis points, while the Bank of England would likely go for 50 basis points hike and push interest rate to 4%.
More hawkish stance from the BOE, compared to Fed, could be supportive for sterling, as this week’s hikes would also further narrow the gap between their monetary policies.
Res: 1.2446; 1.2455; 1.2500; 1.2544.
Sup: 1.2371; 1.2304; 1.2263; 1.2216.
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
AUD/USD favours extra retracements in the short term
AUD/USD kept the negative stance well in place and briefly broke below the key 0.6400 support to clinch a new low for the year on the back of the strong dollar and mixed results from the Chinese docket.
EUR/USD now shifts its attention to 1.0500
The ongoing upward momentum of the Greenback prompted EUR/USD to lose more ground, hitting new lows for 2024 around 1.0600, driven by the significant divergence in monetary policy between the Fed and the ECB.
Gold aiming to re-conquer the $2,400 level
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
Bitcoin price defends $60K as whales hold onto their BTC despite market dip
Bitcoin (BTC) price still has traders and investors at the edge of their seats as it slides further away from its all-time high (ATH) of $73,777. Some call it a shakeout meant to dispel the weak hands, while others see it as a buying opportunity.
Friday's Silver selloff may have actually been great news for silver bulls!
Silver endured a significant selloff last Friday. Was this another step forward in the bull market? This may seem counterintuitive, but GoldMoney founder James Turk thinks it was a positive sign for silver bulls.