– GBP/USD is looking vulnerable above 1.1940 amid the risk-off market mood.
– The USD Index is gathering strength to reclaim the immediate resistance of 105.00 amid hawkish Fed bets.
– Downward-sloping 20-and 50-period EMAs add to the downside filters.
The GBP/USD pair is displaying a volatility contraction around 1.1940 in the early Tokyo session.The Cable looks set to deliver further weakness as a fresh renewal in the Federal Reserve’s (Fed) hawkish bets has strengthened the US Dollar.
S&P500 futures witnessed immense pressure last week on hopes that more
rates are in pipeline by the Fed as the United States inflation has turned persistent due to the strong labor market.The US Dollar Index (DXY) is gathering strength to reclaim the immediate resistance of 105.00.A jump in the monthly US core Personal Consumption Expenditure (PCE) price index by 0.6% sent 10-year US Treasury yields to near 3.95%.
GBP/USD is auctioning in an Inverted Flag chart pattern on an hourly scale.
The chart pattern indicates a sheer consolidation that is followed by a breakdown.Usually, the consolidation phase of the
chart pattern serves as an inventory adjustment in which those participants initiate shorts, which prefer to enter an auction after the establishment of a bearish bias.
It is worth noting that the Inverted Flag is forming around the horizontal support plotted from February 17 low at 1.1915.
An inventory adjustment near crucial support indicates that bulls US Dollar bulls are gathering strength to discover more losses.
Downward-sloping 20-and 50-period Exponential Moving Averages (EMAs) at 1.2007 and 1.975 respectively, add to the downside filters.
The Relative Strength Index (RSI) (14) is oscillating in the 20.00-40.00 range, which indicates that the downside momentum is active.
A confident break below February 17 low at 1.1915 will drag
the Cable firmly towards January 5 low at 1.1875 followed by the round-level support at 1.1800.
On the contrary, a move above February 24 high at 1.2040 will drive the asset towards February 23 high around 1.2080.A breach of the latter will expose the asset to February 21 high of around 1.2140.
GBP/USD hourly chart
GBP/USD
|Overview|
|Today last price||1.1949|
|Today Daily Change||0.0006|
|Today Daily Change %||0.05|
|Today daily open||1.1943|
|Trends|
|Daily SMA20||1.2109|
|Daily SMA50||1.2149|
|Daily SMA100||1.1941|
|Daily SMA200||1.193|
|Levels|
|Previous Daily High||1.2042|
|Previous Daily Low||1.1928|
|Previous Weekly High||1.2148|
|Previous Weekly Low||1.1928|
|Previous Monthly High||1.2448|
|Previous Monthly Low||1.1841|
|Daily Fibonacci 38.2%||1.1972|
|Daily Fibonacci 61.8%||1.1999|
|Daily Pivot Point S1||1.19|
|Daily Pivot Point S2||1.1858|
|Daily Pivot Point S3||1.1787|
|Daily Pivot Point R1||1.2014|
|Daily Pivot Point R2||1.2085|
|Daily Pivot Point R3||1.2127|
Information on these pages contains forward-looking statements that involve risks and uncertainties.
Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.You should do your own thorough research before making any investment decisions.FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.It also does not guarantee that this information is of a timely nature.Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.
The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations.The author makes no representations as to the accuracy, completeness, or suitability of this information.FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Recommended content
Editors’ Picks
AUD/USD bulls eye a correction to test dynamic resistance
[]https://www.fxstreet.com/currencies/audusd
The US Dollar climbed to seven-week peaks on Friday, leaving the Aussie on the backfoot after data showed US inflation accelerated while consumer spending rebounded last month.
AUD/USD News
EUR/USD eyes more downside below 1.0540 as US PCE propels hawkish Fed bets
[]https://www.fxstreet.com/currencies/eurusd
The EUR/USD pair is juggling in a narrow range above 1.0540 in the early Asian session.The major currency pair is likely to show more weakness after surrendering the immediate support of 1.0540 ahead.
EUR/USD News
Gold: Strong US Dollar signals XAU/USD fall towards sub-$1,800 zone
[]https://www.fxstreet.com/markets/commodities/metals/gold
Gold price stays depressed at the lowest levels in two-months after declining in the last five consecutive days, as well as printing four-week south-run.
Gold News
Everything you need to know about Ethereum’s Shanghai hard fork and why it matters
Ethereum network is preparing for the Sepolia testnet at 4 pm UTC on February 28 and the Shapella hard fork in March 2023.
The combination of Shanghai and Capella hard forks marks a milestone in the development of the largest altcoin in the crypto ecosystem.
Read more
Soft landing, to no landing, to crash landing
[]https://www.fxstreet.com/analysis/soft-landing-to-no-landing-to-crash-landing-202302241952
The Deep State of Wall Street has changed the narrative from an economy that will probably undergo a just a soft landing, to one that will now experience no landing at all.This specious propaganda is derived from the situation where we find CPI falling from 9.1% last summer, to 6.4% in January of this year.
https://www.fxstreet.com/analysis/soft-landing-to-no-landing-to-crash-landing-202302241952.
