GBP/USD outlook: GBP/USD eases from new multi-week high, deflated by economic data

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable pulled back from new two-month high, posted after Thursday’s nearly 1.9% advance (the biggest daily gain in one year, deflated by stronger than expected drop in UK inflation last month and better than expected US retail sales, which counter the fresh signals that the Fed may start cutting interest rates in early Q2 2024.

The price fell back into daily Ichimoku cloud (cloud top lays at 1.2439, reinforced by 200DMA) with daily close below here to weaken near-term structure and risk deeper pullback.

Fading bullish momentum on daily chart and stochastic hitting the borderline of overbought territory, add to initial negative signals, which still require confirmation.

Immediate support lays at 1.2395 (Fibo 23.6% of 1.2037/1.2505 rally) which guards lower pivots at 1.2345 (daily Tenkan-sen) and 1.2326 (Fibo 38.2%).

Caution on bounce and repeated close above the top of daily cloud, which would signal a limited correction and keep larger bulls intact.

Res: 1.2439; 1.2459; 1.2505; 1.2547

Sup: 1.2395; 1.2345; 1.2326; 1.2287

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

1. R3 1.2571
2. R2 1.2537
3. R1 1.2473
PP 1.2438
1. S1 1.2375
2. S2 1.234
3. S3 1.2277

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 weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.