GBPUSD: 1.4081
Cable was hit by the combination of a dovish Carney and another poor data report, with the UK retail sales missing expectation and leaving the topside breakout earlier in week looking like a major false break. Having just about survived the RS figure, Cable had pretty much held on to 1.4200 but then collapsed when Carney spoke, prevaricating on the timing of possible rate hikes after a May increase had been pretty much written in, sending Sterling down another 140 points to close near the lows of 1.4068.
1 hour/4 hour indicators: Turning lower
Daily Indicators: Turning lower?
Weekly Indicators: Turning higher?
Preferred Strategy: Cable almost reached our 1.4050 target much quicker than expected, and mow looks capable of reaching the 6 month rising trend support level at 1.4010/15, with a break of 1.4000 allowing a run back to 1.3965.
On the topside, sellers will arrive today at minor levels at 1.4100 and 1.4125 ahead of Fibo levels at 1.4140 and 1.4185 although this looks unlikely to be seen. If wrong, then above 1.4200 would open the way to return to 1.4220 and 1.4260 ahead of 1.4300.
Take a nimble stance today, but technically is does appear that further downside pressure may come about, looking for a run towards 1.4010/15.
| Resistance | Support | ||
| 1.4255 | (61.8% of 1.4376/1.4068) | 1.4068 | Session low |
| 1.4225 | 200 HMA | 1.4043 | (50% of 1.3710/1.4376) |
| 1.4185 | (38.2% of 1.4376/1.4068) | 1.4015 | Rising trend support |
| 1.4140 | (23.6% of 1.4376/1.4068) | 1.4000 | Minor |
| 1.4125 | Minor | 1.3965 | (61.8% of 1.3710/1.4376)/5 Apr low |
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 consolidates recovery gains above 1.0650
EUR/USD stays in a consolidation phase following Wednesday's rebound and trades in a narrow range above 1.0650. The improving risk mood doesn't allow the US Dollar to gather strength as markets await mid-tier data releases.
GBP/USD clings to moderate gains above 1.2450
GBP/USD is clinging to recovery gains above 1.2450 in European trading on Thursday. The pair stays supported by a sustained US Dollar weakness alongside retreating US Treasury bond yields. Fed policymakers will speak later in the day.
Gold shines amid fears of fresh escalation in Middle East tensions
Gold trades in positive territory near $2,380 on Thursday after posting losses on Wednesday. The precious metal holds gains amid fears over tensions in the Middle East further escalating, with Israel responding to Iran's attack over the weekend.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.