Sterling extends weakness below pivotal support at 1.2700 on Tuesday, as Monday's strong upside rejection at daily cloud top and close in red weighed on market. The pair accelerated further down on dovish comments from BoE's Carney about interest rates on Tuesday. Eventual break below 1.2700 (Fibo 61.8% of 1.2635/1.2817 upleg) signaled double-top at 1.2817/14, where recovery attempts stalled and opened way for full retracement of 1.2635/1.2817correction. Near-term focus turned lower on break of 1.2700 handle, with downside pressure increasing on formation of 10/55SMA bear-cross. Higher base and key support at 1.2635 zone, reinforced by 100SMA is coming under pressure, with break here to signal extension of broader downtrend from 1.3000 zone towards next strong support at 1.2556 (200SMA).
Res: 1.2700; 1.2750; 1.2775; 1.2793
Sup: 1.2667; 1.2635; 1.2600; 1.2556
Interested in GBP/USD 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 trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.