#GBPUSD @ 1.24075 bears are lurking near a potential key resistance area. (Pivot Orderbook analysis)
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
- GBP/USD bears are lurking near a potential key resistance area.
- Eyes on a break of structure to the downside on renewed US Dollar strength.
The pair currently trades last at 1.24075.
The previous day high was 1.2507 while the previous day low was 1.2387. The daily 38.2% Fib levels comes at 1.2433, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2461, expected to provide resistance.
GBP/USD is currently correcting towards a 38.2% Fibonacci retracement level near the 1.2420s as it takes on resistance while the Greenback gives some ground back following Tuesday´s resurgence.
Market sentiment turned risk-averse amid worries about earnings in the banking sector especially which drove the US Dollar higher. The DXY index, which measures the US dollar vs. a basket of currencies, benefitted from the related risk-off flows and touched a high of 101.949.
Plunging deposits at First Republic Bank have reignited worries over the health of the banking sector. Additionally, UBS reported a 52% slide in quarterly income as it prepared to swallow fallen rival Credit Suisse. Meanwhile, a weak consumer confidence report added to the rout in stocks on Wall Street as did the decline in Federal Reserve manufacturing data, supporting the US Dollar for its safe haven qualities.
Meanwhile, analysts at Brown Brothers Harriman explained that the Bank of England Deputy Governor Broadbent defended the bank’s policies. ´´Specifically,´´ the analysts said, ´´he said that the BOE’s QE program during the pandemic was not responsible for current high inflation shock. Broadbent noted that “QE inevitably leads to rapid growth of commercial bank deposits … and that this, in turn, inevitably leads to excessive inflation are not well supported by the evidence.” He added that it was “difficult to see these additional deposits as the principal cause of the inflation that’s followed” and that “very large jumps” in import prices such as energy, “seem the more likely cause.” We concur. Massive waves of QE in the wake of the financial crisis and then the eurozone crisis did not spark inflation.´´
The analysts anticipate another 25 bp hike June 22 is around 80% priced, while odds of one last 25 bp hike top out near 75% for September 21 and so the peak policy rate is seen near 5.0% vs. 4.75% at the start of last week and between 4.50-4.75% at the start of the week before that.
The price is correcting back into what would be a potential resistance area before what could evolve into a downward continuation.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2415 at the time of writing. Pair opened at 1.2408 and is trading with a change of 0.06 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2415 |
| 1 | Today Daily Change | 0.0007 |
| 2 | Today Daily Change % | 0.0600 |
| 3 | Today daily open | 1.2408 |
The pair is trading below its 20 Daily moving average @ 1.2426, above its 50 Daily moving average @ 1.2221 , above its 100 Daily moving average @ 1.2204 and above its 200 Daily moving average @ 1.1932
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2426 |
| 1 | Daily SMA50 | 1.2221 |
| 2 | Daily SMA100 | 1.2204 |
| 3 | Daily SMA200 | 1.1932 |
The previous day high was 1.2507 while the previous day low was 1.2387. The daily 38.2% Fib levels comes at 1.2433, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2461, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.2361, 1.2314, 1.224
- Pivot resistance is noted at 1.2481, 1.2554, 1.2601
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2507 |
| Previous Daily Low | 1.2387 |
| Previous Weekly High | 1.2474 |
| Previous Weekly Low | 1.2354 |
| Previous Monthly High | 1.2424 |
| Previous Monthly Low | 1.1803 |
| Daily Fibonacci 38.2% | 1.2433 |
| Daily Fibonacci 61.8% | 1.2461 |
| Daily Pivot Point S1 | 1.2361 |
| Daily Pivot Point S2 | 1.2314 |
| Daily Pivot Point S3 | 1.2240 |
| Daily Pivot Point R1 | 1.2481 |
| Daily Pivot Point R2 | 1.2554 |
| Daily Pivot Point R3 | 1.2601 |
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
