• 536 days Will The ECB Continue To Hike Rates?
  • 537 days Forbes: Aramco Remains Largest Company In The Middle East
  • 538 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 938 days Could Crypto Overtake Traditional Investment?
  • 943 days Americans Still Quitting Jobs At Record Pace
  • 945 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 948 days Is The Dollar Too Strong?
  • 948 days Big Tech Disappoints Investors on Earnings Calls
  • 949 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 951 days China Is Quietly Trying To Distance Itself From Russia
  • 951 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 955 days Crypto Investors Won Big In 2021
  • 955 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 956 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 958 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 959 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 962 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 963 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 963 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 965 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Daily Technical Report

GBP/USD: Sequence of false breaks adds to uncertainty.

GBP/USD has witnessed two failed breaks over recent sessions, which are best viewed in the hourly time frame. The initial fall under 1.5577 was quickly reversed which led to a push over 1.5726. This failed to gain momentum, seeing a return to the hourly range for the week.

As expected, 10 year Italian sovereign yields have found interim support close to 5.750% and are now trading back above 6.000%. If this deterioration continues then we can expect to see Sterling being adopted as a safe haven again. This may help to explain why we have not broken out of the week's range yet, whereas, at the time of writing, most other currencies are lower versus the USD from a weekly perspective.

We remain alert to the fact that we are nearing the base of the year long range which, given the short-term relief seen in the Euro-Zone, may offer opportunities to enter long positions.

Taking this approach will need to see levels closer to 1.5400 for a well placed stop. The range bound trade of the last few days is best avoided.

Daily Technical Report

 

Read the Report

Back to homepage

Leave a comment

Leave a comment