Slobodan Drvenica
Windsor Brokers
Bears accelerated in Asia on Friday, following Thursday’s close in red after attempts above psychological 1.3000 barrier were capped by falling weekly cloud.
Thursday’s red daily candle with long upper shadow signaled rising downside risk, as
the pair came under fresh pressure after weaker than expected UK Q1 GDP.
Additional pressure came on release of the latest polls showing narrowing lead of UK Conservative party against Labour party ahead of June 8 elections.
UK PM May party’s lead narrowed to 5 points (Tories 43% vs Labour 38%), falling to the lowest after having a comfortable lead of 9 points last week.
The pound remains offered in early Europe, with end of week profit taking expected to put further pressure on the pair.
Technical studies turned bearish on lower timeframes as cable took out initial pivots provided by 10/20 SMA’s at 1.2948/32 and acceleration lower also broke below daily Kijun-sen at 1.2901 on daily chart.
Near-term focus turned to key supports at 1.2844/30 (12 / 4 May troughs) break below which would risk extension towards next pivotal support at 1.2786 (Fibo 38.2% of 1.2365/1.3047).
Current pullback is seen as correction of larger uptrend from 1.2108 (14 Mar low) and should be ideally contained at 1.2790 zone, according to wave principles, as the pair is currently riding on the fourth (corrective) wave of five-wave cycle from 1.2108.
Break below 1.2790 pivot would signal stronger correction.
Upside is expected to stay protected by broken 10SMA / daily Tenkan-sen at 1.2950 zone.
Res: 1.2901; 1.2950; 1.2962; 1.3000
Sup: 1.2844; 1.2830; 1.2786; 1.2706
Interested in GBPUSD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data.