Slobodan Drvenica
Windsor Brokers
Cable bounced from session low at 1.4160 (one-week low) and regained levels at 1.4140 zone, as M&A news offset negative impact from weak retail sales data, released earlier today.
Series of weaker than expected key UK data in last three days (wages; CPI, retail sales) put sterling under increased pressure and sparked pullback from new post-Brexit vote recovery high at 1.4376, posted on Tuesday.
Two-day reversal found footstep at 1.4160 today and subsequent bounce returned well above cracked rising 10SMA and tested next pivot at 1.4243 (Fibo 38.2% of 1.4376/1.4160 bear-leg). Fresh bulls need close above 10SMA as minimum requirement for bullish signal, while close above 1.4243 Fibo barrier would neutralize immediate downside threats and signal higher low formation.
The notion is supported by daily techs in full bullish mode and hopes that downbeat data wouldn’t impact expectations for BoE’s rate hike on their policy meeting next month.
Res: 1.4268; 1.4293; 1.4314; 1.4376
Sup: 1.4209; 1.4160; 1.4145; 1.4122
Interested in GBPUSD 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
US economy grows at an annual rate of 1.6% in Q1 – LIVE
The US' real GDP expanded at an annual rate of 1.6% in the first quarter, the US Bureau of Economic Analysis' first estimate showed on Thursday. This reading came in worse than the market expectation for a growth of 2.5%.
EUR/USD retreats to 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated to the 1.0700 area. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 with first reaction to US data
GBP/USD declined below 1.2500 and erased a portion of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold falls below $2,330 as US yields push higher
Gold came under modest bearish pressure and declined below $2,330. The benchmark 10-year US Treasury bond yield is up more than 1% on the day after US GDP report, making it difficult for XAU/USD to extend its daily recovery.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.