Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable lost ground on Monday and retraced the most of bounce from new multi-month low (1.2110) in past two days.
Friday’s candle with long upper shadow signaled that recovery was strongly rejected and formation of a bull-trap above falling 10DMA, added to signs of stall.
Fresh bears pressure again cracked Fibo support at 1.2118 (76.4% of 1.1802/1.3141 rally) but may face headwinds here again, as daily RSI remains in oversold territory.
Prolonged consolidation could be expected on repeated failure to break lower, though, bearish bias remains as long as falling 10DMA (1.2231) caps.
Break of 1.2118 pivot would open way for test of key supports at 1.2074/1.2000/1.1988 (Fibo 38.2% of 1.0348/1.3141/psychological / top of rising and thickening weekly Ichimoku cloud) loss of which would signal deeper fall.
Sterling is expected remain under increased pressure after September’s 3.7% drop (the biggest monthly loss since Aug 2022), as markets remain optimistic about the US economy, which is likely to have soft landing, due to limited negative impact from high borrowing cost.
US manufacturing PMI surprised to the upside in September, coming closer to 50 threshold, while focus shifts on several reports from the US labor sector, due this week.
Res: 1.2164; 1.2229; 1.2271; 1.2314.
Sup: 1.2110; 1.2074; 1.2000; 1.1988.
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 near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
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.