GBPUSD
Cable moved lower in early European trading on Wednesday, hitting session low at 1.3225 and pressuring initial pivot at 1.3220 (Fibo 38.2% of 1.2960/1.3381 upleg), following narrow-range action in Asia. Fresh comments about Brexit released this morning, talking about current frustration over parliament's failure to make a decision and PM May unable to make significant adjustments to her plan, as well as comments about Brexit delay and revived fears of no-deal scenario, pushed pound lower. Volatility rises as all possibilities (no-deal exit on 29 Mar; Brexit extension; parliament's final approval of the plan; second Brexit referendum) remain on the table and maintain strong uncertainty among traders. The price action of past few days holds in flag-shaped pattern, with north-turning momentum and MA's bullish setup, maintaining slight bullish tone, but significant upside rejection on Tuesday warns that demand fades. Pivotal supports at 1.3195/84 (converged 10/20SMA's) stay intact for now and keep in play dip-buying scenario above here. Stronger bearish signal could be expected on sustained break lower that would open way for further easing towards pivotal supports at 1.3120/1.3096 (Fibo 61.8%/30SMA) and risk retest of key 200SMA support (1.2985). Two important releases today are in focus for fresh signals. UK inflation is expected to remain unchanged at 1.8% in Feb (core CPI also at 1.9%), with Fed policy decision being the top event today.
Res: 1.3272; 1.3310; 1.3330; 1.3349
Sup: 1.3195; 1.3184; 1.3170; 1.3120
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 holds gains near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
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.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.