Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable fell below 1.2700 marks and hit the session low on Thursday, after the BoE kept rates unchanged but markets saw it as a dovish hold which deflated pound.
The fact that inflation returned to 2% target in May did not play the key role in BoE today’s decision, as the policymakers remain cautious and look for more evidence, before start easing the borrowing cost from its multi-year high.
Technical picture weakened as 14-d momentum is heading deeper into negative territory and converging daily Tenkan/Kijun-sen are about to form a bear-cross, while next week’s daily cloud twist could also be magnetic (cloud is below the price).
However, near-term action is holding within a range which extends into fourth straight day, with break of range floor (1.2656) and nearby Fibo support and 100DMA (1.2646/39), to generate bearish signal for continuation of the bear-leg from 1.2860 (June 12 spike high) and expose targets at 1.2596/80 (daily cloud top / 200DMA).
Bearish near-term bias expected while the price holds below descending 10DMA (1.2724) while sustained break above 20DMA (1.2742) to put bears on hold.
Res: 1.2724; 1.2742; 1.2763; 1.807
Sup: 1.2656; 1.2639; 1.2596; 1.2580
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 stays vulnerable near 1.0600 ahead of US inflation data
EUR/USD remains under pressure near 1.0600 in European trading on Wednesday. The pair faces headwinds from the US Dollar upsurge, Germany's political instability and a cautiou market mood, as traders look to US CPI data and Fedspeak for fresh directives.
GBP/USD trades with caution below 1.2750, awaits BoE Mann, US CPI
GBP/USD trades with caution below 1.2750 in the European session on Wednesday, holding its losing streak. Traders turn risk-averse and refrain from placing fresh bets on the pair ahead of BoE policymaker Mann's speech and US CPI data.
Gold price holds above $2,600 mark, bulls seem non committed ahead of US CPI
Gold price staged a modest recovery from a nearly two-month low touched on Tuesday. Elevated US bond yields and bullish USD cap gains for the non-yielding XAU/USD. Traders now look forward to the key US Consumer Price Index report a fresh impetus.
US CPI data set to confirm inflation ramped up in October as traders pare back Fed rate cut bets
As measured by the CPI, inflation in the US is expected to increase at an annual rate of 2.6% in October, a tad higher than the 2.4% growth reported in September. The core annual CPI inflation, excluding volatile food and energy prices, will likely remain at 3.3% in the same period.
Forex: Trump 2.0 – A high-stakes economic rollercoaster for global markets
The "Trump trade" is back in full force, shaking up global markets in the aftermath of the November 5th U.S. election. This resurgence has led to substantial shifts in both currency and bond markets, with the U.S. dollar index (DXY) jumping 2.0% + since election day.
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.