Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable regained traction and bounced on Wednesday, signaling an end of three-day pullback, sparked by a double rejection at 200DMA (1.3733) last week.
Pound was boosted by UK CPI data which showed that inflation in Britain continued to rise and hit the highest level in nearly 30 years in December, offsetting policymakers’ general view of transitory process and boosting hopes for another BoE’s rate hike on Feb 3 monetary policy meeting.
On the other side, political turmoil in Britain over a series of lockdown parties in Downing Street, which caused strong revolt by lawmakers, resulting in demands for PM Johnson’s resignation, so far did not have strong negative impact on the currency, but may undermine pound’s performance.
Daily studies remain constructive and support scenario of an end of shallow correction, as 14-day momentum remains in the positive territory and turned north, while formation of 20/100DMA bull-cross and thick daily cloud underpin the action.
Today’s close above cracked 10DMA (1.3627) would generate initial positive signal, with close above 1.3660 (Tuesday’s high / Fibo 50% of 1.3748/1.3572 pullback) to complete bullish engulfing pattern and boost positive signals.
Res: 1.3660; 1.3681; 1.3707; 1.3733.
Sup: 1.3614; 1.3572; 1.3546; 1.3498.
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 stays below 1.0400 on soft EU inflation data
EUR/USD clings to modest daily gains above 1.0350 during the European trading hours. Eurostat reported that annual Core HICP remained steady at 5% in the Eurozone in November as expected. Investors await key data releases from the US and Powell's speech.
GBP/USD recovers from 1.1940 as US Dollar refreshes day’s low, Fed Powell’s speech eyed
GBP/USD has sensed responsive buying action around 1.1940 as risk aversion loses luster. The Bank of England is expected to advance its interest rates to 4.25% in Q1CY2023. GBP/USD has gained strength after testing the 200-EMA around 1.1960.
Gold bulls seek validation from $1,760 and Fed Chair Powell
Gold price remains firmer for the second consecutive day, bounces off 10-DMA, short-term key support. Fed Powell’s first speech after November, hawkish hopes tease Gold sellers.
Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next
Bitcoin price action has spiked 5% over the last 24 hours, hinting at the start of an optimistic scenario. Previous publications have already explored why BTC is ready for a bear market rally from both short-term and long-term outlooks.
ADP Jobs Preview: Markets set to find more reasons to sell the Dollar, big beat needed to boost it Premium
ADP's jobs report has finally come in line with the official NFP report. It took a hiatus and a change in formula to make that happen, but what matters is that this release finally matters.