Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable rose further in early Friday’s trading, extending the rally on Thursday (up nearly 0.80%) sparked by unexpected acceleration in US weekly jobless claims (strongest rise in five months).
Additional support for sterling came from UK GDP data which showed that economy grew by 0.3% in January after contracting by 0.5% in December and beating forecast for 0.1% expansion, adding to expectations for another BOE rate hike in the policy meeting on March 23.
All eyes are on US February non-farm payrolls, due later today (205K f/c vs 517K Jan), which is expected to offer more clues on the Fed’s next steps and provide fresh direction signal.
Technical studies on daily chart have improved after Thursday’s rally signaled formation of Doji reversal pattern and generated bullish signal on return and close above 200DMA.
However, fresh bulls will need more work at the upside to boost positive signal as moving averages (except 200DMA) remain in bearish setup and 14-d momentum is still in the negative territory.
Bulls face headwinds at initial barrier (10DMA at 1.1965), which guards more significant 1.2000/08 (psychological / 20DMA), 1.2049 (Fibo 38.2% of 1.2447/1.1802) and 1.2073 (base of falling weekly Ichimoku cloud).
Firm break of these barriers is needed to boost reversal signal and open way for stronger recovery, while early upside rejection would generate initial signal of recovery stall and keep in play risk of return to Wednesday’s low at 1.1802 (the lowest since late November).
Res: 1.1965; 1.2000; 1.2049; 1.2073.
Sup: 1.1898; 1.1840; 1.1820; 1.1802.
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 drops toward 1.0700 after US jobs report
EUR/USD came under renewed bearish pressure in the second half of the day on Friday and declined toward 1.0700. Stronger-than-expected Nonfarm Payrolls (NFP) data helps the US Dollar gather strength ahead of the weekend and forces the pair to stay on the back foot.
GBP/USD extends slide below 1.2450 amid a stronger USD
GBP/USD dropped further and hit fresh daily lows below 1.2450 amid a stronger US dollar. The Greenback remains firm following the release of the US May jobs report. Despite losing almost 100 pips on Friday, GBP/USD is still on track for a weekly gain.
Gold falls below $1,960 as US yields rebound after US jobs data
Gold price turned south and declined below $1,960 on Friday. After the data from the US revealed that Nonfarm Payrolls rose 339,000 in May, the benchmark 10-year US Treasury bond yield gained more than 2% and recovered toward 3.7%, weighing heavily on XAU/USD.
Cardano price coils up for a 15% rally as 6.61 million ADA net flow value comes in
Cardano price appears to be ready to finally break out from the consolidation after flipping above a crucial roadblock. The optimism comes as the ADA token recorded a massive spike in large transactions nearing 35,000 in 48 hours.
Week ahead – RBA and BoC to hold rates but might be tempted to hike
Policy decisions from the RBA and the Bank of Canada will be taking centre stage next week amid an otherwise light agenda. In the US, the ISM services PMI will be the only top-tier release and now that Congress has averted a default by suspending the debt ceiling.