REFILE-BUZZ-COMMENT-Sterling's Oct 2023 low intact, flagging a potential reversal
Adds tags
Jan 29 (Reuters) - Sterling has been in a downward spiral since October 2024 with little sign of a recovery. However, the monthly GBP/USD chart shows the key October 2023 1.2039 low is intact and coupled with a monthly candle signal, warn of a potential reversal.
Fundamental factors have weighed on the pound in recent months and a four-month bear trend has breached key technical levels en-route to the January 1 low of 1.2100, a near 10% depreciation.
The 100- and 10-day moving averages gave way at 1.2914 and 1.2813, respectively. This month has seen a drop below the daily Ichimoku kijun line at 1.2620. The daily cloud top at 1.2288 was also broken.
A sterling recovery to 1.2523 on Jan. 27 has, however, given potential for a monthly reversal signal. A hammer candlestick, a bullish warning, has formed and, if GBP/USD closes the month above the 1.2288 cloud top, there could be scope for further gains during February.
A hammer forms when the market has sold off sharply but ends the period near the highs, leaving a long lower shadow. For a hammer to have significance there needs to be a preceding falling trend.
Sterling remains under pressure and the short-term picture could show further weakness, but the longer-term charts could hold hope for the pound.
For more click on FXBUZ
Related Articles
Fed Rate Cut Finally Arrives,Dollar Index: Negative Catalysts Largely Priced In,Euro Rally May Be Running Out of Steam
Tradingkey - The Federal Reserve lowered the target range for the federal funds rate by 25 basis points to 4.00%–4.25% late yesterday, as widely expected, and signaled two additional rate cuts this year.
[U.S. IPO] Netskope Raises $908 Million in IPO, Debuts Thursday: A Rising Star in Cloud Security?
TradingKey - Backed by venture capital firm Lightspeed Venture Partners, Netskope Inc., a technology provider specializing in securing enterprise cloud services, has raised $908.2 million in its IPO. The company's valuation now exceeds $7 billion. Netskope is set to list on the Nasdaq under the tick-24998ce9215f4781a8d3878dba968c9e.jpg)
Why the September Fed Meeting Feels So Strange? The Answer Lies with Miran, Cook and Trump
TradingKey - Beyond analyzing whether the updated dot plot after the Fed’s rate decision reflects a dovish or hawkish tilt, investors are increasingly curious about what will become of the Federal Reserve amid political interference, personnel changes, and potential institutional shifts. The Wall
[U.S. IPO] Oilfield Water Giant WaterBridge Raises $634M in IPO; Can It Repeat LandBridge's 125% Surge?
TradingKey - Oil field water management company WaterBridge (WBI) announced on September 16 that its US initial public offering (IPO) is expected to price 31.7 million shares at $20 per share, raising a total of $634 million.
September Global Central Bank Divergence: How Will U.S. Stocks and Forex Markets Move?
TradingKey - Despite the divergence in monetary policies among major global central banks in September (with the Federal Reserve cutting rates while the European Central Bank, Bank of England, and Bank of Japan maintain steady rates), we expect the policy directions of the Fed, ECB, and BoE to...
