GBPUSD: 1.2976
Sterling remained rangebound on Wednesday, running into good offers ahead of 1.3000 although it did move to a new 8 month high 1.2991 before finishing the day at 1.2960.
The momentum indicators remain mixed and we may be in for more of the same in the coming session, although if the US$ does remain under pressure, Cable will eventually see an upside break of 1.300, triggering stops, which would open the way to decent resistance at each of 1.3035 and 1.3075, and then further out to where the longer descending term trend resistance currently lies, at around 1.3135.
On the downside, 1.2900/10 will continue to act as support ahead of the 16 May low of 1.2865. Back below here could then see a move back to the 12 May low of 1.2844, to 1.2830 (4 May low) and possibly to 1.2800/10.
I mildly prefer to be long Sterling but it may be that we just chop around current levels.
24 Hour: Prefer to sell rallies | Medium Term: Neutral – Possible topside break? | ||
Resistance | Support | ||
1.3135 | Descending trend resistance | 1.2905 | Session low |
1.3075 | (23.6% of 1.7191/1.1821) | 1.2864 | 16 May low |
1.3035 | (38.2% of 1.5017/1.1821) | 1.2844 | 12 May low |
1.3000 | Weekly cloud base | 1.2830 | 4 May low |
1.2990 | Session high | 1.2805 | 26 Apr low |
Economic data highlights will include:
Q1 Provisional GDP, Foreign Bond/Stocks Investment
Interested in GBPUSD technicals? Check out the key levels
All content on this website, www.fxcharts.com.au (FX Charts PL) is a personal view only and offers absolutely no guarantee as to the correctness or otherwise of that opinion. The content here is of a “general nature” only and does not constitute personal or investment advice. The FX Charts website is not an inducement to trade Foreign Exchange (FX). No liability whatsoever is accepted for any loss or damage that may result, directly or indirectly, from any , comment, opinion, information or omission, whether negligent or otherwise, within the FX Charts Website. The information and any opinion or outlook expressed in this commentary may be based on assumptions or market conditions and may be liable change at any time, without notice.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.