Asian Open FOMC Down US GDP Next Asian Markets Set to Bounce
With a slightly hawkish FOMC meeting out of the way, we’re watching Asian equities as we suspect a corrective bounce is now on the cards.
Share this:
British Pound Technical Outlook: GBP/USD Short-Term Trade Levels
- British Pound breaks 2024 yearly opening-range- plunges back below 200-day moving average
- GBP/USD now testing multi-week downtrend- more significant technical support just lower
- Resistance 1.2523, 1.2594-1.2623, 1.2708/31– Support 1.2423, 1.2337/64 (key), 1.2220
The British Pound plummeted more than 3.7% off the March highs with a break of the yearly-opening-range now approaching multi-month trend support- risk for possible downside exhaustion / price inflection in the days ahead. These are the updated targets and invalidation levels that matter on the GBP/USD short-term technical charts.
Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Sterling setup and more. Join live on Monday’s at 8:30am EST.
British Pound Price Chart – GBP/USD Daily
Chart Prepared by Michael Boutros, Sr. Technical Strategist; GBP/USD on TradingView
Technical Outlook: In last month’s British Pound Short-term Outlook we noted that GBP/USD was, “approaching key support hurdles that IF broken, could compromise the February uptrend…” We once again highlighted key resistance, “at 1.2773-1.2823- a region defined by the February 2019 low, the 2024 yearly opening-range highs, and the June high-day close (HDC).” Sterling registered an intraday high at 1.2803 the following day before reversing sharply lower with GBP/USD now off more than 3% from those highs.
The immediate focus is on a cluster of lateral support levels just lower with longer-term slope support (blue) also converging on this region. The burden is on the bears to follow-through on a break of the yearly opening-range lows.
British Pound Price Chart – GBP/USD 240min
Chart Prepared by Michael Boutros, Sr. Technical Strategist; GBP/USD on TradingView
Notes: A closer look at Sterling price action shows GBP/USD trading into confluent support early in the week at the 2022 December high-day close (HDC) around 1.2423. A more significant technical confluence zone rests just lower at 1.2337/64- a region defined by the October swing high, the 100% extension of the March decline, and the 61.8% Fibonacci retracement of the October advance. Look for a larger reaction there IF reached with a break / weekly close below needed to suggest a larger trend reversal is underway towards the 78.6% retracement near 1.2220.
Look for initial resistance at the 23.6% retracement (currently ~1.2523) with key resistance now lowered to the 38.2% retracement / objective April open at 1.2594-1.2323. Note that channel resistance also converges on this threshold over the next few weeks. Broader bearish invalidation now lowered to the 61.8% retracement / 2024 yearly-open at 1.2708/31.
Bottom line: Sterling is testing downtrend support with a key technical confluence seen just lower- risk for possible price inflection here. From at trading standpoint, a good zone to reduce portions of short-exposure / lower protective stops – rallies should be limited to the monthly open IF price is heading lower on this stretch with a close below 1.2337 needed to fuel the next leg in price. Keep in mind we have key UK inflation data on tap tomorrow – watch the weekly close here for guidance. Review my latest British Pound Weekly Forecast for a closer look at the longer-term GBP/USD trade levels.
Key GBP/USD Economic Data Releases
Economic Calendar - latest economic developments and upcoming event risk.
Active Short-term Technical Charts
- Australian Dollar Short-term Outlook: AUD/USD Plunges Post-CPI
- Gold Short-term Outlook: XAU/USD Bulls Attempt to Secure 2300
- Canadian Dollar Short-term Outlook: USD/CAD Snap Back- Bears Eye 1.35
- US Dollar Short-term Outlook: USD Bulls March into April
- Euro Short-term Technical Outlook: EUR/USD Erases Fed Rally
--- Written by Michael Boutros, Sr Technical Strategist with FOREX.com
Follow Michael on X @MBForex
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
RBA delivers 25bp hike, Bullock now the main event
The RBA delivered the expected 25bp hike, but Bullock’s press conference now looms as the bigger volatility risk for AUD/USD and the ASX 200.
ASX 200 Futures Reversal Patterns Put to the Test
Not all reversal patterns are created equal. Historical ASX 200 futures data shows which signals have been more reliable, and why risk management still matters.
Cyclical stocks sniff out better times ahead
Different economies, different drivers, similar price action. The German DAX, ASX 200 and Russell 2000 are all hinting at a more optimistic view on the global economy.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.