GBPUSD Price Analysis: Bulls rally into resistance, but eye last week's highs

GBPUSD bulls move in on Monday to cash in on weakness in the US dollar and yields.
Cable has reached close to last week's high but may be facing headwinds at resistance.

Ross J Burland FXStreet

Cable (GBPUSD) rose on Monday, supported by a risk-on sentiment across markets. there are signs of some easing of market conditions following last week's mixed Nonfarm Payrolls report that shows that the Unemployment Rate rose to 3.7%. This has fuelled hopes that the much sought-after Federal Reserve pivot could be on the horizon. Consequently, Us yields are stalling as the following technical analysis will show and GBPUSD is gathering pace on the bid.

GBPUSD H1 chart

The hourly charts show the price firmly bid with eyes towards last week's highs and then last month's highs in the 1.1616 area and 1.1645s.

GBPUSD M15 chart

Cable is stretched at this juncture into a resistance area on the 15-min charts. A move below the current micro trendline will set the stage for a move back onto to test structure at 1.1450.

US 2-year yields

The daily chart shows that there could be some stalling to come from the 2-year yields given the recent wicks and lower highs. A break of the current support near 4.644% opens risk of a significant move lower to test the trendline supports. In turn, such a switch in yields would likely dent the greenback and support Cable higher.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD hits nine-week lows below 0.7000 on RBA Bullock's remarks

AUD/USD reverses a brief uptick and turns lower to hit nine-week lows below 0.7000 in the European morning on Tuesday, as traders digest cautious remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock during the press conference. Earlier on, the RBA raised the cash rate to 4.60%, as widely expected, leaving the door open to further rate hikes if needed.

USD/JPY consolidates near 157.50 as a bullish USD counters intervention risks

USD/JPY struggles to capitalize on the overnight bounce from a one-week low, consolidating around 157.50 in the Asian session on Tuesday. Trump's concerns about the Japanese Yen's weakness fueled speculation about another US-Japan joint intervention. This, along with the hawkish BoJ, underpins the JPY and caps the currency pair. Meanwhile, rising Fed rate-hike bets and oil-driven inflation fears continue to push US bond yields to multi-year highs, keeping the US Dollar pinned near a two-month high and supporting the pair.

Gold regains some traction; focus remains on $4,100

Gold manages to gather some composure and bounces off recent lows near the key $4,100 mark per troy ounce on Tuesday. The move higher in the precious metal comes despite the firmer US Dollar and rising US Treasury yields across the board, while escalating geopolitical tensions appear to limit the downside potential.

Crypto Today: Bitcoin, Ethereum, XRP correct upward amid declining ETF inflows

The cryptocurrency market upholds a neutral-to-bullish bias on Tuesday, with Bitcoin edging closer to a breakout above $84,000. Altcoins mirror BTC’s outlook, with Ethereum holding above $2,700 and Ripple pushing past the reclaimed $1.50 level.

RBA recap: Rate hikes are on the table as demand stays too strong

The Reserve Bank of Australia unanimously tightened monetary policy, warning that inflation remained too high and that several upside risks had begun to materialise. Governor Michele Bullock said the Board would raise rates again if necessary.

Silver is more volatile than Gold ahead of PCE and NFP. This chart shows the positioning gap

The market’s attention is focused on American data this week, but there’s something only those with a trained eye may be looking at: Gold and Silver positioning gap. Financial markets are moving on fears, mostly related to persistently high energy prices driven by the Middle East war. Sure, the US Dollar (USD) is strong, but at what cost?