GBP/USD outlook: Cable falls to new 2022 low after weak UK GDP data added to negative sentiment

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable extends steep fall of past four weeks and probed below 1.22 handle to hit new 2022 low.

Weak UK GDP data, released today, added to negative sentiment, fueled by risk aversion that continues to inflate the US dollar.

Negative fundamentals dominate and so far counter signals from strongly oversold daily and weekly studies, however, some price adjustment should be anticipated in the coming sessions, in response to oversold conditions.

Upticks are expected to be limited and capped under 1.2400 zone (May 11 spike high / falling daily Tenkan-sen) to keep bears intact and offer better levels to re-enter strong bearish market.

Bears see no significant obstacles en-route to next targets at 1.2080/00 (Fibo 76.4% of 1.1409/1.4249 rally / psychological), with risk of deeper fall on violation of 1.20 pivot, remaining in play.

Res: 1.2250; 1.2300; 1.2375; 1.2400.
Sup: 1.2165; 1.2100; 1.2080; 1.2000.

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.252
2. R2 1.246
3. R1 1.2358
PP 1.2298
1. S1 1.2195
2. S2 1.2135
3. S3 1.2032

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD extends slide toward 1.1800 on renewed USD strength

EUR/USD extends its daily slide and trades at a fresh weekly low below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls below 1.3550, pressured by weak UK jobs report

GBP/USD remains under heavy bearish pressure and falls toward 1.3500 on Tuesday. The UK employment data highlighted worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.