Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable bounces from new five-month low in early Wednesday, following higher than expected UK inflation in March, which eases pressure on BoE to start cutting interest rates as early as next month and inflates pound.
Overall technical picture on daily chart is firmly bearish but oversold conditions to signals for correction.
Fresh gains cracked initial resistance at 1.2477 (Fibo 23.6% of 1.2709/1.2405 bear-leg, which guard more significant barriers at 1.2500/20 zone (psychological / former lows / Fibo 38.2%) and 1.2550 (10DMA / 50% retracement.
The latter barrier should cap upticks to mark a healthy correction and positioning for fresh push lower.
Death-cross (10/200DMA) and converging 20/200DMA’s in attempt to form another death-cross, contribute to scenario.
Res: 1.2498; 1.2521; 1.2550; 1.2578.
Sup: 1.2400; 1.2364; 1.2289; 1.2239.
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 manages to hold above 200-hour SMA ahead of Eurozone CPI, FOMC
EUR/USD meets with some supply during the Asian session on Tuesday and erodes a part of the previous day's gains amid the emergence of fresh US Dollar buying. Spot prices, however, remain in a familiar range held over the past week or so and currently trade around the 1.0700 round-figure mark.
GBP/USD consolidates its gains above 1.2550, investors await Fed rate decision
GBP/USD consolidates its gains near 1.2560 after flirting with the key 200-day SMA and three-week highs in the 1.2550-1.2560 zone during the early Tuesday. Investors reduce their bets on BoE rate cuts, which support the Cable.
Gold price traders remain on the sidelines ahead of FOMC decision on Wednesday
Gold price remains confined in a narrow range as traders prefer to wait on the sidelines. Reduced Fed rate cut bets revive the USD demand and act as a headwind for the metal. Investors now await the FOMC decision and US macro data before placing directional bets.
BNB price risks a 10% drop as Binance founder and ex-CEO Changpeng Zhao eyes Tuesday sentencing
Binance Coin price is dumping, with the one-day chart showing a defined downtrend. While the broader market continues to bleed, things could get worse for BNB price ahead of Binance executive Changpeng Zhao sentencing on Tuesday, April 30.
FX market still on intervention watch
Asian foreign exchange traders will be particularly attentive to any signs of Japanese intervention on Tuesday, following reports of Tokyo's involvement in the market on Monday. This intervention action propelled the yen upward from its 34-year low of 160 per dollar, setting off shockwaves of volatility.