GBPUSD TECHS: Bears Remain In The Driver’s Seat
- RES 4: 1.2865 High Mar 11
- RES 3: 1.2803 High Mar 21
- RES 2: 1.2574/2709 20-day EMA / High Apr 09
- RES 1: 1.2540 Low Apr 2 / 1
- PRICE: 1.2465 @ 17:02 BST Apr 18
- SUP 1: 1.2406 Low Apr 17
- SUP 2: 1.2364 61.8% retracement of the Oct 4 - Mar 8 bull leg
- SUP 3: 1.2266 Low Nov 14 ‘23
- SUP 4: 1.2239 76.4% retracement of the Oct 4 - Mar 8 bull leg
The trend condition in GBPUSD remains bearish and the pair is trading closer to its recent lows. The recent breach of 1.2519, Feb 5 low, strengthens a bearish theme and signals a stronger reversal. Moving average studies are in a bear-mode set-up and this highlights a clear short-term downtrend. Scope is seen for an extension towards 1.2364, a Fibonacci retracement. On the upside, key resistance has been defined at 1.2709, the Apr 10 high.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
OPTIONS: Larger FX Option Pipeline
- EUR/USD: Mar21 $1.0900-15(E2.1bln), $1.0990-05(E1.9bln); Mar22 $1.0825-35(E2.0bln), $1.0865-75(E1.6bln), $1.0900-05(E930mln), $1.0940-50(E1.1bln)
- USD/JPY: Mar22 Y148.80-00($1.9bln), Y149.55($1.1bln); Mar25 Y149.80-00($1.8bln)
- AUD/USD: Mar22 $0.6650(A$1.3bln), $0.6750(A$2.6bln), $0.6825(A$2.6bln)
- NZD/USD: Mar22 $0.6050(N$1.2bln)
- USD/CAD: Mar22 C$1.3370($1.1bln), C$1.3480-00($2.2bln); Mar25 C$1.3485-00($1.9bln)
- USD/CNY: Mar22 Cny7.1500($1.1bln)
FED: A Second Limited Increase In O/N RRP
- The Fed’s O/N RRP saw uptake of $447.0bn in today’s operation.
- It’s a daily increase of only $6bn for a limited $33bn compared to Friday’s new recent lows, relatively small compared to some estimates of potential GSE inflows at this time of the month.
- The number of counterparties held steady at 70, still at the low end of recent readings.
US: Congressional Hearing On Withdrawal From Afghanistan Underway
The US House of Representatives Committee on Foreign Affairs has gaveled-in to hear testimony from former Chairman of Joint Chiefs of Staff General Mark Miley and former Commander of United States Central Command General Kenneth McKenzie Jr on the US withdrawal from Afghanistan in 2021. LIVESTREAM
- The withdrawal from Afghanistan is regularly cited as a turning point for the presidency of Joe Biden. It precipitated a major collapse in Biden's approval which has never recovered and remains a major political vulnerability for Biden ahead of the presidential election in November.
- Axios notes: "Republicans on the panel will try to get the retired generals on the record in order to tie the chaos of the withdrawal back to Biden and his White House officials..."
- Axios adds that the hearing, "will be intense," with Republicans likely to frequently reference, "the Kabul airport attack, in which 170 Afghan civilians and 13 U.S. service members were killed in an ISIS-K suicide bombing."
- A spokesperson for Foreign Relations Democrats said: "None of the interviews or materials State has produced to the Committee makes these suggestions, and to blame the President for an ISIS terrorist attack demonstrates the extremism of this Republican Party."
