Slobodan Drvenica
Windsor Brokers
Cable fell sharply on comments from EU’s chief Brexit negotiator Barnier who said on Thursday that Brexit talks are in impasse as negotiations got stuck over the amount Britain should pay on divorce.
Situation is seen very worrying for big number of projects in Europe and for those who contribute.
News sent pound sharply lower across the board.
Cable dipped to 1.3141 in mid-Thursday’s trading and retested strong support provided by 55SMA on strong bearish acceleration after bulls stalled at 1.3266 3266 (Fibo 38.2% of 1.3655/1.3026 descend).
Fresh weakness weakened near-term structure as sharp fall surged through thick hourly cloud and pressures 55SMA pivot, loss of which is needed to confirm an end of corrective phase from 1.3026 and lower top at 1.3266 for renewed attempts towards 1.3026 (06 Oct low / 100SMA) and psychological 1.3000 support.
Immediate downside risk would reduced while 55SMA holds, but bounce and close above 10SMA (1.3204) is needed to neutralize and shift focus higher.
Res: 1.3164; 1.3200; 1.3266; 1.3318
Sup: 1.3136; 1.3074; 1.3026; 1.3000
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
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.