It’s a slow day in terms of top-tier economic releases, but risk-off flows are off to a roaring start!
Can we get a chance to hop in Cable’s slide?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Crude oil prices surge to record levels on Iranian talks standstill
U.S. and European allies discussing banning imports of Russian oil
South Korea suspending transactions with Russia’s central bank
China reports highest daily tally of COVID-19 infections since pandemic began
Australian ANZ job advertisement rebounded by 8.4% after earlier 0.7% drop
Chinese trade surplus widened from $94.5B to $116B vs. $95.5B forecast
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone Sentix consumer confidence at 9:30 am GMT
U.S. consumer credit at 8:00 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: GBP/USD
Cable recently fell through its symmetrical triangle bottom and is now finding some support around 1.3185. Will we see a pullback from here?
Stochastic is pulling higher from the oversold region and has plenty of room to climb before reflecting exhaustion among buyers.
This could allow the pair to retrace to the Fibs or even retest the broken triangle support, which happens to be right smack in line with the 61.8% Fibonacci retracement level. Plus, this coincides with the 100 SMA dynamic inflection point, too!
If sellers return at this point, GBP/USD could fall back to the swing low or lower. A shallow correction might already encounter bearish pressure at the 50% Fib near the 1.3300 handle or even the 38.2% level at 1.3275.
The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is likely to resume soon.
Besides, risk aversion has already been propping up the safe-haven dollar early in the week, so this kind of sentiment might persist while geopolitical tensions are present.
