GBPUSD
Recovery from new multi-month low at 1.2605 is running out of steam as attempts to extend higher, stalled at 1.2947 in early Asian trading on Monday, unable to break above Fibo 23.6% of 1.3179/1.2605/falling 10 SMA (1.2940/41). Bulls are losing traction despite formation of Doji reversal pattern on daily chart as overall outlook remains negative over no-deal Brexit fears and political turmoil in the UK. Daily studies are in bearish mode and current action was seen as positioning for fresh weakness, however, extended consolidation above 1.2600 zone, which proves to be solid support, may extend. Victory of Brexit party in the EU election and defeat of main Conservative and Labor parties shows that the UK is strongly divided over Brexit. Resignation of PM May and battle of candidates for the leadership, adds to political uncertainty that weighs on starling and may limit recovery. Near-term outlook is expected to remain negative while falling 10SMA caps, with extension and close below 5SMA (1.2685) to risk retest of 1.26 zone. Only close above 10SMA would keep in play hopes for further recovery and possible test of next pivotal barrier at 1.2824 (Fibo 38.2% of 1.3179/1.2605).
Res: 1.2740; 1.2763; 1.2810; 1.2824
Sup: 1.2685; 1.2647; 1.2605; 1.2580
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 trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.