Slobodan Drvenica
Windsor Brokers
Sterling enters US session at the front foot after hitting one-week high at 1.2705 earlier, with initial positive signals being generated on break above 10SMA (1.2643) and last Thursday's recovery high at 1.2686.
Weaker dollar on expectations of Fed's dovish hike tomorrow keeps pound underpinned, but bulls need to sustain break above 1.2700 (Fibo 61.8% of 1.2839/1.2476) and 20SMA (1.2714) to confirm full retracement of post-parliamentary Brexit vote cancellation fall and signal further recovery.
Close above 10SMA would generate initial positive signal, but weakening momentum on daily chart could upset bulls.
Conversely, failure to close above 10SMA would weaken near-term tone and keep the downside vulnerable.
Res: 1.2700; 1.2713; 1.2782; 1.2810
Sup: 1.2643; 1.2609; 1.2564; 1.2528
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
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.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.