GBP/USD outlook: Cable is consolidating under new one-month high

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable is consolidating under new one-month high (1.3773) in early Monday, following last week’s 0.55% advance and weekly close above double-Fibo barriers at 1.3721 (61.8% of 1.3912/1.3411) and 1.3731 (61.8% of 1.4249/1.3411) that generated bullish signal.

The sentiment remains strong as hopes for BoE rate hike as early as November were boosted by hawkish comments from Governor Bailey, who said that the central bank is gearing up for the first rate hike after pandemic on mounting inflation risk.

Although Bailey sees the recent jump in inflation as temporary, worries that surge in energy prices would push inflation higher and for a longer period, would prompt BoE to act.

Fresh bullish acceleration is facing headwinds from thin daily cloud, which looks like minor obstacle, as the price emerged above thick ascending weekly cloud that underpins.

Rising bullish momentum and double bull- cross of 5/20 and 10/20DMA’s supports the action, but sideways-moving stochastic and RSI suggest bulls may take a breather before resuming.

Broken Fibo barrier offers immediate support at 1.3721 with extended dips expected to find ground above 1.3675 (5/30DMA bull-cross) to keep bulls intact.

Res: 1.3777; 1.3794; 1.3812; 1.3844.
Sup: 1.3721; 1.3675; 1.3662; 1.3643.

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

1. R3 1.3894
2. R2 1.3834
3. R1 1.3789
PP 1.3728
1. S1 1.3683
2. S2 1.3623
3. S3 1.3578

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 its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.