Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable jumped around 0.4% in European trading on Wednesday, lifted by above forecast UK December inflation data, which soured the sentiment about rate cut, pushing percentage of bets for rate cut by May significantly lower.
Fresh gains move the price from dangerous zone after the price retested the floor of larger range at 1.2600 zone, which extends into fifth consecutive week.
Although the price action moved into range’s mid-point, there is still notable lack of clearer direction signals, as negative momentum on daily chart is strengthening, but moving averages are mixed and rising and thickening daily cloud continues to underpin.
Look for initial bullish signal on close above 10DMA (1.2715) which will be verified on extension above 1.2785 (Jan 12 top), with signal of bullish continuation of larger uptrend from 1.2037 (Oct 4 low), expected on clear break above pivotal 1.2830/40 zone (range top / 200WMA).
Conversely, sustained break of range floor would signal that larger bulls are losing traction, but violation of more significant supports at 1.2545/39 (200DMA / daily cloud top) will be required to signal reversal.
Res: 1.2696; 1.2715; 1.2785; 1.2843.
Sup: 1.2596; 1.2545; 1.2526; 1.2500.
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 corrects toward 0.6850, awaits US PCE Price Index
AUD/USD is falling back toward 0.6850 in Friday's Asian trading, reversing from near 19-month peak. A tepid US Dollar bounce drags the pair lower but the downside appears called by the latest Chinese stimulus measures, which boost risk sentiment ahead of US PCE data.
USD/JPY pares gains toward 145.00 after Tokyo CPI inflation data
USD/JPY is paring back gains to head toward 145.00 in the Asian session on Friday, as Tokyo CPI inflation data keep hopes of BoJ rate hikes alive. However, intensifying risk flows on China's policy optimism support the pair's renewed upside. The focus shifts to the US PCE inflation data.
Gold price consolidates below record high as traders await US PCE Price Index
Gold price climbed to a fresh all-time peak on Thursday amid dovish Fed expectations. The USD languished near the YTD low and shrugged off Thursday’s upbeat US data. The upbeat market mood caps the XAU/USD ahead of the key US PCE Price Index.
Avalanche rallies following launch of incentive program for developers
Avalanche announced the launch of Retro9000 on Thursday as part of its larger Avalanche9000 upgrade. Retro9000 is a program designed to support developers with up to $40 million in grants for building on the Avalanche testnet.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.