Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable remains in a negative mode in early Monday and probed again through key 1.30 support (psychological/Mar 15 low), following last Friday’s short-lived dip to 1.2982 (the lowest since Nov 2020).
Rising US dollar keeps the pound in defensive, while weaker than expected UK Feb GDP data added pressure to the currency, threatening of a final clear break of 1.30 pivot that would risk extension towards 1.2855/ 20 zone (lows of Nov/Oct 2020 respectively).
Quick bounce from the levels below 1.30 on Friday/today, signals that bears face strong headwinds here and may struggle further in attempts to break lower, however, near-term action remains biased lower and extended consolidation is likely to precede fresh leg lower.
The notion is supported by rising negative momentum on daily chart and moving averages in full bearish setup, with upticks to offer better selling opportunities while holding below 1.3100 zone (falling 10DMA/trendline resistance/Fibo 38.2% of 1.3298/1.2982 bear-leg).
Res: 1.3054; 1.3085; 1.3102; 1.3140.
Sup: 1.3000; 1.2982; 1.2900; 1.2855.
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
AUD/USD languishes near multi-year lows below 0.6250 after dovish RBA Minutes
AUD/USD remains depressed below 0.6250 early Tuesday after the December RBA Minutes reiterated that upside inflation risks had diminished, which reaffirms bets for a rate cut in early 2025. This, along with concerns about China's fragile economic recovery and US-China trade war, undermines the Aussie and weighs on the pair.
USD/JPY eases toward 157.00 after Japanese verbal intervention
USD/JPY has come under renewed selling pressure, easing toward 157.00 after Japanese Finance Minister Kato's verbal intervention. The pair erased early gains, induced by the October BoJ meeting Minutes. However, the downside could be limited as the US Dollar hold the previous rebound.
Gold remains stuck between two key barriers amid thin trading
Gold price is attempting another run higher while defending the $2,600 threshold early Tuesday. In doing so, Gold price replicates the recovery moves seen in Monday’s trading, which eventually fizzled out on a broad US Dollar comeback in tandem with US Treasury bond yields.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.