GBPUSD rallies above trendline resistance on weak US CPI; brighter outlook for the UK economy

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable surged through trendline resistance (1.3930) after data showed US inflation slowed in February.
CPI rose 0.2% previous month, matching the forecast but falling well below previous month’s 0.5% rise, signaling that expected pickup in inflation will be likely gradual.
Inflation report came after Jobs data last Friday which cooled expectations for stronger pace of US rate hikes in 2018, with weak CPI numbers expected to add further negative sentiment. Sterling was also supported by positive remarks from UK FinMin Hammond in his half-yearly update on the economy and public finances, showing brighter outlook for the UK economy. Lift above trendline resistance (which also marks Fibo 61.8% of 1.4069/1.3711 bear-leg) is strong bullish signal for acceleration towards initial barrier at 1.40 (daily cloud top) with possible extension towards 1.4069 (26 Feb lower top).
Close above bear-trendline is needed to confirm scenario.

Res: 1.3985; 1.4000; 1.4069; 1.4100
Sup: 1.3930; 1.3914; 1.3874; 1.3850

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.4013
2. R2 1.3966
3. R1 1.3936
PP 1.3888
1. S1 1.3858
2. S2 1.3811
3. S3 1.3781

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 climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.