GBPUSD hits new 2018 high and could extend rally if UK jobs data beat forecasts

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable continues to trend higher and hit new post-Brexit recovery high at 1.4369 on Tuesday as extension of Monday’s strong rally broke above previous 2018 high at 1.2344 (25 Jan).
Pound remains supported on rising expectations of BoE’s rate hike next month and could extend rally after triggering stops above 1.4344.
Immediate focus turns at psychological 1.4400 barrier, but bulls could stretch further and test target at 1.4508 (FE 100% of the wave C from 1.3965).
Daily techs are in full bullish setup and supportive, but overbought RSI and slow stochastic warn of pullback.
Corrective easing would offer better buying opportunities, with solid support at 1.4244 (former highs of 26/27 Mar) and rising 10SMA (1.4181) expected to contain extended dips.
UK jobs data are the key event today and could provide fresh boost for the pound on better than expected outcome. Focus is on average earnings (Feb f/c 3.0% vs 2.8% in March) and release at/above forecasted level would be supportive.
UK unemployment rate is expected to remain unchanged at 4.3% while jobless claims are expected to rise in March (13.3K f/c vs 9.2K in Feb.

Res: 1.4380; 1.4400; 1.4450; 1.4508
Sup: 1.4344; 1.4277; 1.4244; 1.4181

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.4493
2. R2 1.4419
3. R1 1.4379
PP 1.4305
1. S1 1.4265
2. S2 1.4191
3. S3 1.4151

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD loses ground below 1.1850 ahead of FOMC Minutes

The EUR/USD pair loses traction near 1.1840 during the early European session on Wednesday, pressured by renewed US Dollar demand. Traders brace for the Federal Open Market Committee Minutes for signals on future rate cuts, which will be released later on Wednesday.

When is the UK CPI data and how could it affect GBP/USD?

The United Kingdom Consumer Price Index data for January is scheduled to be published today at 07:00 GMT. GBP/USD trades slightly lower at around 1.3556 as of writing. The 20-period Exponential Moving Average trends lower at 1.3593 and continues to cap rebounds. Price holds beneath this gauge, maintaining a short-term bearish bias.

Gold: Is the $5,000 level back in sight?

Gold snaps a two-day downtrend, as recovery gathers traction toward $5,000 on Wednesday. The US Dollar recovers from the overnight sell-off as rebalancing trades resume ahead of Fed Minutes. The 38.2% Fib support holds on the daily chart for now. What does that mean for Gold?

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.