capitalstreetfx06
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Daily FX Analysis – GBP/USD drops, EUR/USD navigates, NZD/USD strengthens, USD/CHF soars.
Introduction
GBP/USD faces pressure, dropping towards 1.2650 after disappointing UK Retail Sales data. The pair grapples with a resurgent US Dollar and cautious market sentiment, awaiting crucial US data and Federal Reserve speeches. Meanwhile, EUR/USD remains stable below 1.0900, monitoring ECB President Lagarde's speech. NZD/USD gains strength above 0.6100, while USD/CHF rises to nearly 0.8680 on SNB Chairman's concerns about the appreciating Swiss Franc. Market dynamics continue to evolve as traders brace for upcoming economic indicators and central bank communications.Markets In Focus Today – GBP/USD
GBP/USD Drops Toward 1.2650 After UK Retail Sales Data.
GBP/USD is dropping toward 1.2650, under intense selling pressure after the UK Retail Sales dropped more than expected in December. The pair is also feeling the heat from a pause in the US Dollar decline, as sentiment remains tepid ahead of top-tier US data, Fedspeak. GBP/USD reversed its direction after dipping below 1.2700 and closed in positive territory above 1.2750 on Thursday. The positive shift seen in risk mood supports the pair on Friday as markets await Producer Price Index (PPI) data from the US. Inflation figures provided a boost to the US Dollar (USD) with the initial reaction but they seemingly failed to persuade markets that the Federal Reserve (Fed) could refrain from lowering the policy rate in March.Technical Overview With Chart :
Moving Averages :
Exponential :
- MA 10 : 1.27 | Negative Crossover | Bearish
- MA 20 : 1.27 | Negative Crossover | Bearish
- MA 50 : 1.26 | Positive Crossover | Bullish
Simple :
- MA 10 : 1.27 | Negative Crossover | Bearish
- MA 20 : 1.27 | Negative Crossover | Bearish
- MA 50 : 1.26 | Positive Crossover | Bullish
Stochastic Oscillator : 47.09 | Neutral Zone | Neutral
Resistance And Support Levels :
- R1 : 1.28 R2 : 1.29
- S1 : 1.26 S2 : 1.25
