Richard Perry
Independent Analyst
GBP/USD
Another key downside break is taking Cable ever lower within its medium term trading range with the key support band $1.2075/$1.2160 coming closer into view. Initially it had looked as though sterling was looking to build some sort of support yesterday, but the selling pressure increased as the session wore on and another negative candle has taken the market to a four week low. The move is backed by a developing downtrend of the past two and a half weeks, (falling at $1.2430 today), whilst momentum indicators also confirm the ongoing deterioration. We now see the daily RSI falling under 40 and the last time it was this low was when the $1.2160 low was formed. With Cable now making consistent lower daily highs, we look to use intraday rallies as a chance to sell for a test of $1.2160 and potentially the key medium term range low of $1.2075. The hourly chart shows how pivot levels of resistance are being left now. Yesterday’s high of $1.2390 is an increasingly important support, but equally it seems this morning, that Friday’s low around $1.2310 is becoming a new basis of resistance on a rebound. Initial support at $1.2250 is yesterday’s low.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
GBP/USD slides to its lowest level since November, eyes 1.2400 ahead of UK jobs data
GBP/USD drifts lower for the third straight day on Tuesday and drops to its lowest level since November 17 during the Asian session. Spot prices trade around the 1.2420 region as traders now look to the UK monthly employment details for a fresh impetus.
EUR/USD steadies above 1.0600, awaits German ZEW and Powell speech
EUR/USD is holding above 1.0600 in the European morning on Tuesday, having hit fresh five-month lows. The pair draws support from sluggish US Treasury bond yields but the rebound appears capped amid a stronger US Dollar and risk-aversion. Germany's ZEW survey and Powell awaited.
Gold price holds steady below $2,400 mark, bullish potential seems intact
Gold price oscillates in a narrow band on Tuesday and remains close to the all-time peak. The worsening Middle East crisis weighs on investors’ sentiment and benefits the metal. Reduced Fed rate cut bets lift the USD to a fresh YTD top and cap gains for the XAU/USD.
SOL primed for a breakout as it completes a rounding bottom pattern
Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.
Key economic and earnings releases to watch
The market’s focus may be on geopolitical issues at the start of this week, but there is a large amount of economic data and more earnings releases to digest in the coming days.