GBPUSD: Stops on shorts from 1.3980 are quite tight above 1..4025

Carol Harmer Charmer Trading

GBPUSD

Cable still above this trendline...but we are just not making the move higher....Stops on shorts from 1.3980 are quite tight above 1..4025 because we need to give the allgos their bit of fun as they stop hunt at the round figureitus area...There are traders who used to only come in at the round figures so they are quite important...

Now that weekly bullish pattern remains in place....I go along with that....I agree there is no reason at all why Cable should not trade higher......We are back around the base of the range...and because of this I think any short positions should be covered...Now although as Iv said the weekly charts do have this bullish pattern...The daily charts even now with GBP coming lower the technical indicators still are looking overbought...and have turned bearish...so we really do need to take care at these lower levels...because if we go back below the trendline at 1.3885 we look to initially 1.3866 then the 1.3825 support... 1.3850 ties in with the 50% med term fib level so you will be getting quite a few buyers at these lower levels and profit taking from sellers will be the order of the day...

Now if the market does cling onto trendline support and bounces back we would once more be looking at 1.3980 where we sell...stops above 1.4025...and we would look to go long if the market breaks 1.4035 for 1.4145 as our initial target...

GBPUSD Current Trading Positions

Sell 67%

Buy 33%

Avg Sell Price 1.3843

Avg Buy Price 1.3778

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.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold hangs near one-week low; looks to FOMC Minutes for fresh impetus

Gold is consolidating just above the $4,850 level, having touched a one-week low on Tuesday, amid mixed cues. Signs of progress in US–Iran talks dent demand for the traditional safe-haven bullion. Meanwhile, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders also seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.