Slobodan Drvenica
Windsor Brokers
GBP/USD
Bears are taking a breather in European trading on Monday after strong acceleration on Thu/Fri which resulted in a weekly loss of 1.7% (the biggest weekly fall since the third week of September).
Formation of Doji reversal pattern on a weekly chart, following a multiple rejection under the base of falling weekly cloud weighs on near-term action, adding to pressure from stronger dollar on upbeat US jobs data.
Weakening daily studies on rising negative momentum and MA’s (10/20/55) turning to bearish setup, contribute to signals of possible further weakness, but oversold conditions suggest that bears may pause for consolidation, before attacking supports at 1.20 (psychological) and 1.1951 (200DMA), with extension below 1.1841 (Jan 6 trough) to confirm a double-top (1.2447) and signal reversal.
The action should be ideally capped by the top of daily cloud (1.2140) reinforced by daily Kijun-sen, to keep fresh bears intact, with potential extended upticks to stall under daily Tenkan-sen (1.2230) to maintain bearish bias.
Res: 1.2070; 1.2100; 1.2140; 1.2189.
Sup: 1.2030; 1.2000; 1.1951; 1.1900.
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
USD/JPY holds above 155.50 ahead of BoJ policy announcement
USD/JPY is trading tightly above 155.50, off multi-year highs ahead of the BoJ policy announcement. The Yen draws support from higher Japanese bond yields even as the Tokyo CPI inflation cooled more than expected.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.