Weaker than expected UK inflation data (Mar CPI 1.9% y/y vs 2.0% f/c) push sterling further down on Wednesday, as lower inflation reinforces idea that BoE is unlikely to increase interest rates in the near future.
Extension of strong fall previous day (0.39%) reinforces negative signal from Tuesday's bearish outside day.
Near-term focus shifts lower, exposing psychological 1.30 support, which should keep dips contained and guard key support at 1.2971 (200SMA). Daily momentum remains firm and attempts to break into positive territory that supports scenario of limited dips, but conflicts with bearishly aligned stochastic and 10,20,30SMA's.
Hopes for fresh upside attempts would remain alive while 1.3000/1.2971 pivots hold, however, lift above a cluster of daily MA's/daily cloud top/Fibo 38.2% of 1.3381/1.2977 (between 1.3060 and 1.3131) is needed to confirm bullish scenario.
Lower volumes on pre-holiday thinned market may keep the pair within existing range with absence of Brexit news adding to scenario.

Res: 1.3061; 1.3089; 1.3100; 1.3131
Sup: 1.3031; 1.3000; 1.2971; 1.2949



Interested in GBPUSD technicals? Check out the key levels

    1. R3 1.3162
    2. R2 1.3137
    3. R1 1.3093
  1. PP 1.3068
    1. S1 1.3024
    2. S2 1.2999
    3. S3 1.2955

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

AUD/USD: Fresh lows, channel support tested, Golden Ratio in focus

Bears taking out the H&S neckline, target channel support/uptrend at 0.6829. Failures of the channel open risk to 61.8% Fibo and then 0.6755 November low. The risk-off mood in Asia not helping bull's case ahead of key data and an expected rate cut from a dovish RBA.


USD/JPY: Major bull cross fails to inspire Yen bears

USD/JPY is hovering below 110.00 with yen showing resilience, despite the bullish development on technical charts. The S&P 500 futures are hinting at risk reset in the markets. A notable equity market recovery could weigh over yen. 


Coronavirus FX Selloff, CAD Prime for Bank of Canada Breakout?

The most influential story for the financial markets today was reports that the first US case of corona virus has been confirmed. This deadly virus is spreading across the globe creating concerns about the impact on travel and consumer spending.

Read more

Gold: Stays below $1,560 following Tuesday’s bearish spinning top

Gold remains on the back foot while trading around $1,556.90 during the Asian session on Wednesday. The yellow metal portrayed a bearish candlestick formation, backed by bearish MACD, during the previous day.

Gold News

GBP/USD: Aims to revisit 200-hour SMA, immediate support trendline

GBP/USD registers mild losses while trading around 1.3045 during Wednesday’s Asian session. The pair earlier reversed from 50% Fib retracement of its fall from Jan 07 to 14. A two-week-old falling trend line adds to the resistance.


Forex Majors