EURUSD fades bounce off 11-week-old support on ECB dayWith the US Dollar’s failure to cheer upbeat PMI details, the EURUSD pair managed to rebound from an upward-sloping support line from early November, especially when the activity data from Germany and the Eurozone came in positive. The recovery moves, however, failed to cross the 50-SMA hurdle on a daily closing basis and tease sellers ahead of the all-important monetary policy meeting of the European Central Bank (ECB). While the bloc’s central bank is likely to keep the monetary policy unchanged, the focus will be on the signals for future rate cuts as market players expect the first rate cut before June but the policymakers appeared hesitant for the same of late.
That said, any hawkish clues will allow the Euro pair to cross the immediate upside hurdle, namely the 50-SMA hurdle surrounding 1.0920. However, the support-turned-resistance line stretched from November 01, close to 1.0985 at the latest, will precede the 1.1000 psychological magnet to challenge the pair buyers before giving them control.
Meanwhile, the downbeat RSI conditions and the limited odds of favoring the ECB hawks suggest further weakening of the pair. The same highlights the aforementioned nine-week-old ascending trend line support line, near 1.0830 by the press time. It’s worth noting that the monthly low of 1.0820 and the previous monthly low of around 1.0720 will act as additional downside filters before a smooth sailing toward the late October swing high of near 1.0700.
Events
GBPUSD bears look for entries with eyes on UK employment dataHaving reversed from the late October tops, GBPUSD pokes the key support lines around the mid-1.3600s. Given the receding bullish bias of the MACD and RSI retreat, the prices are likely to decline further. However, the UK employment data will be crucial to watch for clear direction. Should the cable pair stays below the stated 1.3650 support, odds of its gradual declines toward the 100-SMA level of 1.3540 and then to the 200-SMA level surrounding 1.3400 can’t be ruled. However, a horizontal line surrounding 61.8% Fibonacci retracement of December-January upside, near 1.3370, will be a tough nut to crack for the pair sellers afterward.
Meanwhile, the 1.3700 and the recent tops around 1.3750 act as nearby resistances to watch during the pair’s fresh advances. Should the quote rises past 1.3750, tops marked during October and September 2021, respectively around 1.3835 and 1.3915, will challenge the GBPUSD buyers ahead of directing them to the July 2021 peak of 1.3982. During the quote’s advances past 1.3982, the 1.4000 threshold will be crucial to watch for further upside.
To sum up, GBPUSD sellers await a clear signal for fresh entries from technical, as well as fundamentals.
Fun Tether Pair Analysisit broke a major trend line in bull run and going parabolic to ath . reason for this is ,funfair new event that is released recently and sep last it is indrocing deflationary protocol. So burn token means demand will rise. do your own research im holding this untill sep. Target 0.06 maybe more
GBPUSD struggles to extend bounce off 21-DMA post UK GDPGBPUSD fails to cheer upbeat UK GDP figures as market plays await fresh clues to confirm the Fed tapering chatters. Even so, the cable keeps the previous day’s rebound from 21-DMA amid firmer RSI, suggesting further recovery towards the 1.3900 round figure. However, a convergence of 21-DMA and a downward sloping trend line from June 11, around 1.3925-30, becomes the key hurdle. In a case where the pair buyers cross 1.3930 resistance, July’s top surrounding 1.3985 may test the bulls before offering them a free pass to ride beyond the 1.4000 psychological magnet.
Meanwhile, a daily closing below the 21-DMA level of 1.3830 becomes necessary for the Sterling bear’s entry. Following that, the early July’s low near 1.3730 and bottoms marked in March and April, around 1.3670, will challenge the GBPUSD sellers. Although the quote is likely to consolidate around 1.3670 before declining further, a clear south-run below the same horizontal support may not hesitate to visit the previous month’s low, near 1.3570.
200-SMA set to test GBPUSD pullback on “Super Thursday”GBPUSD refreshes a two-week low on the key “Super Thursday” dominated by the Bank of England’s (BOE) quarterly moves. With the increased hopes of BOE’s hawkish comments, based on the UK’s vaccinations, GBPUSD may bounce off the key SMA support. However, the weekly resistance line near 1.3650 could restrict further recovery moves before recalling the 1.3700 threshold on the chart. In a case where BOE Governor Andrew Bailey sounds too optimistic and rejects negative rate hopes, a one-month-old ascending resistance line near 1.3775-80 and the 1.3800 round-figure should gain the market’s attention.
On the contrary, any disappointment from the “Old Lady”, which is highly feared, can challenge the yearly low near 1.3450. Should the BOE-led disappointment gains support from the USD’s strong run-up, mainly due to its safe-haven demand, GBPUSD might not hesitate to challenge December’s low 1.3133. During the fall, 1.3430, 1.3300 and 1.3180 can act as buffers. Overall, GBPUSD trades near the key support on a very important day and hence cable traders should remain cautious ahead of the event.