GBP/USD outlook: Bears resume after five-day consolidation under 1.40
Cable dropped to three-week low on Friday, after breaking below five-day congestion, capped by 1.40 barrier. Fresh strength of the US dollar added pressure on sterling to extend pullback from new nearly three-year high (1.4238), with violation of 1.3869 (Fibo 23.6% of 1.2675/1.4238/range floor) and 1.3841 (rising 30DMA) generating fresh bearish signals.
Bears pressure 1.3800 (round figure support) eyeing 55DMA (1.3724) and more significant levels at 1.3641/39 (Fibo 38.2%/top of rising daily cloud). Rising negative momentum and daily MA’s (10,20,30) in bearish setup support scenario, with US jobs data expected to be a key driver today. Read more...
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GBP/USD retests good support at 1.3865/55
GBPUSD retests good support at 1.3865/55. Further losses meet a buying opportunity at 1.3820/00 with stops below 1.3785. A break lower is a medium term sell signal.Gains are likely to be limited in what could be a developing bear trend. Minor resistance at 1.3940/60 then strong resistance at 1.4000/20.
EURGBP minor resistance at 8660/70 then key resistance at 8700/8710 on a bounce today. A break above 8730 however targets 8750/60, perhaps as far as resistance at 8790/8800.Failure to beat 8660/70 targets 8630/20, perhaps as far as 8595/85 (hit yesterday). A break lower targets 8560/50 with a break below 8540 acting as the next sell signal. Read more...
GBP/USD Forecast: Pound powerless against Powell, Nonfarm Payrolls could deliver extra punch
Britain's new budget has been well received by investors and the country's vaccination campaign is hailed as a success – but nothing can match the Federal Reserve's firepower. That is especially true when the world's most powerful central refuses to budge.
Jerome Powell, Chairman of the Federal Reserve, said that the rapid rise in bond yields has "caught my attention" – but nothing else. Otherwise, he stuck to the script of dismissing prospects of rising inflation, saying that the Fed eyes various measures of financial conditions and stressing that ten million Americans remain out of work. Read more...
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