GBPUSD daily analysis

Carol Harmer Charmer Trading

GBPUSD

There really isn't anything new to add to what I have already said previously this week...We are below both the weekly and daily pivot points...The daily RSI isn't showing that drastic oversold...its @ 26%...low I know...but not enough yet t stop the sellers...I think 1.2665 is the level we will aim for...Sterling crosses are looking weaker...Eur/Gbp remains above 8900..so that shows that the market does have further to go on the downside... we have taken out 1.2735 that was our sell signal for the 1.2665 area...Here I think Cable will stop...It will create a Double base...and this is what I think the market needs to gather its thoughts and momentum an make the move higher...

I don't think we are quite there yet on the downside...and I will not change my view unless this week we take out 1.2835 and stay above it..Then I think we could see some quite good action on the topside with 12908 the immediate target...I beleive buyers would look to cover here...I think also that fresh buyers would be in if we broke above 1.2920 for 12985...The 55 day M/A comes in at1.2985 as well with the 21 day @ 1.3020....Try to get 1.3000 out of your mind..its like roundfigureitus...

Cable works best at the 20 and 85 regions on any of the big figures....so it wouldn't be 1.3000 that holds...it would be 1.2985 or 1.3020....that's the way this market works...weekly charts are still pointing lower...so al the while this is happening, longer term traders will be waiting to sell...we are trending on the momentum signals..so we bear this in mind for the longer term traders....On the weekly charts I have had to take fibs from Oct 2016 flash crash....and this puts the 78.6 weekly level at 1.2510....still a lot higher from the 1.1950 we saw in Oct 2016....but I am a great believer in Double Bases...specially when it comes at the end of a downward move...Cable loves a double top or bottom...that is its favourite pattern....so do not ignore the 1.2665 area...there will be buyers there and we will be joining them..

GBPUSD Current Trading Positions

Sell 33%

Buy 67%

Avg Sell Price 49.0224

Avg Buy Price 25.4995

Liquidity Distribution

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

AUD/USD holds above 0.70 as RBA hike becomes a done deal

The Aussie Dollar dives 0.10% versus the US Dollar as market sentiment deteriorates amid fading US-Iran peace hopes, pushing US bond yields higher while US equity markets fall. Also, price action remained subdued, ahead of the Reserve Bank of Australia monetary policy decision. The AUD/USD trades at 0.7016.

USD/JPY climbs back toward 158.00 after BoJ minutes amid firm USD

USD/JPY finds dip-buyers and reverses part of Friday's slide driven by speculation that authorities will step in again to prop up the Japanese Yen. However, the BoJ's dovish Minutes cap the JPY. Meanwhile, the US Dollar regains traction as the US-Iran standoff supports crude oil prices, fueling inflation fears and reaffirming bets for an October Fed rate hike. This further supports the pair, driving it back toward 158.00.

Gold tumbles below $4.150 as US bond yields, oil prices rise

Gold price falls to near $4,125 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising US Treasury yields and expectations of further Federal Reserve interest rate hikes sap demand for the non-yielding metal.

HBAR, QNT rally as AI safety and tokenized deposits fuel institutional momentum

Hedera (HBAR) and Quant (QNT) are among the crypto market’s strongest performers on Monday, as fresh developments around artificial intelligence (AI) and tokenized banking drive renewed institutional attention. HBAR briefly surged above $0.130 before settling around $0.123, gaining 30% over the past 24 hours.

The week ahead: A key moment for the global economy as threats rise

UK diesel hits a record, as economic concerns rise. The market expects an aggressive Fed rate hiking cycle, but is it necessary? Oil supply concerns ease, even as oil prices rise. What’s next for the AI trade.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.