Next stop 1.4000 or 1.4200?

Andria Pichidi HFM

GBPUSD, H4 and Weekly

Sterling continues to be one of the strongest currency on the day, posting a near 0.5% average gain versus the dollar, euro and yen. Cable traded for 3rd consecutive day above the 61.8% recovery since Brexit Sell of, and above the 50% recovery since 2015 peak. With the dollar coming back under pressure, led by a rebound in EURUSD, after posting fresh recovery during the Asian session, GBPUSD is traded above February’s 2016 support, at 1.3850. The 1.3850 level has been tested several times since yesterday, hence the break above that could be consider significant for pair’s future performance.

By observing the Daily and weekly time-frame of Cable, we have noticed that upper Bollinger Bands keep extending its pattern in both time-frames, suggesting that bulls are in major control of the pair. In the weekly time-frame the pair is well supported by the 20-weeks MA since April 2017, while in the Daily time-frame the price action moves above 200-Day SMA since June 2017. This wider picture of the pair along with Daily momentum indicators, remaining positive, suggests that Cable is likely to test the round 1.4000 level, which is in the mid of 50 and 61.8 Fibonacci level since 2015. The Daily MACD remains positive since November, while RSI is at 75, indicating that there is further upwards space. Therefore a break and hold above 1.4000 would provide further positive momentum, with the next resistance level at the confluence of 200-Weekly MA and the 61.8% Fibonacci level, at 1.4230.

In shorter time frame, significant was the break of the strong resistance at 1.3850. Therefore an entry was taken on the break of this level, with target at yesterday’s high, at 1.3950. Support area was set between 20-period MA, at 1.3800 and 1.3770. The Bollinger Bands extending their upper line in the intra-day picture as well, while the pair is forming high highs and higher lows since January 11. Intra-day Momentum indicators configurated positively, with Stochastic above neutral, positive MACD and RSI reaching 70 and sloping further up, giving further bullish signals for today.

Author

Andria Pichidi

HFM

Having completed her five-year-long studies in the UK, Andria Pichidi has been awarded a BSc in Mathematics and Physics from the University of Bath and a MSc degree in Mathematics, while she holds a postgraduate diploma (PGdip) in

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.