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
EUR/USD clings to gains above 1.0800 amid weaker US Dollar
EUR/USD is trading sideways above 1.0800, consolidating gains in early Europe. The pair is struggling, despite a better risk tone and a broadly weaker US Dollar. Growing recession fears are capping the upside in the pair. ECB-speak awaited.
GBP/USD climbs above 1.2300 ahead of Bailey
GBP/USD has scaled above the critical resistance of 1.2300 amid a cheerful market mood on Tuesday. The US Dollar drops alongside the US Treasury bond yields amid receding global banking fears and a dovish Fed policy outlook. All eyes on Bailey's testimony.
Gold bears prod $1,960 support as bank fears ease
Gold price drops to a fresh intraday low of $1,955 as bears struggle to retake control, after an earlier retreat, during Tuesday’s European session. The bright metal’s latest weakness could be linked to the market’s optimism.
Ethereum (ETH) options traders turn bearish ahead of the token unlock
Ethereum is holding steady above the $1,700 level despite slight bearish sentiment among options traders. Analysts have noted a rise in open interest in Ethereum, as co-founder Lubin assures that the altcoin is not a security.
US Consumer Confidence Preview: No good news for Americans Premium
The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.