Saturday, April 21, 2018
Banner Top
Gbp/Usd Poised For Further Gains From 1.41 If Sentiment Holds
Banner Content
  • Sterling is holding steady ahead of Europe as risk appetite jumps in Asia.
  • A thin calendar for the week for the GBP, at least until BoE Carney’s speech on Thursday.

The GBP/USD is nailed to the Asia session’s opening price near 1.4130, and is holding steady despite a healthy swing in market risk appetite ahead of the European markets.

The Sterling is flying solo in Tuesday’s action with nothing of note on the macro calendar, though speeches from the US Fed’s Kaplan and the Bank of England’s (BoE) Haldane at 08:30 and 09:30 GMT respectively may shake things up if they appear excessively dovish or hawkish on the current tones being set by their respective central banks.

China President Xi: Dialogue is the way to resolve disputes

Last Thursday US President Donald Trump dropped an announcement that he was seeking an additional $100B in tariffs against China in hopes of adding onto the current pile of $50B in duties set to take effect soon, and markets were bracing for Beijing’s reaction. After the Chinese long weekend, China’s President Xi Jinping spoke at the Boao Forum, where he gave a decidedly measured response, opting for a neutral tone and showing a willingness to negotiate. No actual talks or even plans to sit down have been made between the two countries, but tired market participants are eagerly jumping on the risk-on train.

 

GBP/USD Levels to watch

The Sterling is geared up for a run higher after price in a higher low on the Daily candles last week, “technically, the pair has managed to regain ground above the 23.6% retracement of March rally at 1.4115, after bottoming around the 50% retracement last week, which favors a continued advance for the upcoming sessions, particularly if the 1.4100 figure holds. In the 4 hours chart, technical indicators support a bullish extension, as both maintain their bullish slopes near overbought readings, while the price has also moved well above their moving averages that anyway still lack directional strength. A break above the daily high should favor a new leg higher up to 1.4244, where the pair established its March monthly high.”

Support levels: 1.4110 1.4085 1.4040

Resistance levels:  1.4160 1.4200 1.4245

Banner Content

0 Comments

Leave a Comment