Daily Price Outlook

The S&P500 is trading at 3,861.59, down by 1.45% in 24 hours. Stock markets have fallen due to stronger-than-expected NFP data, and worries about bank contagion after the failure of SVB.

The collapse of Silicon Valley Bank

Silicon Valley Bank (SVB) Financial Group's surprise failure and FDIC seizure on Friday motivated a fast Fed meeting on Monday. The US authorities responded to limit the consequences of the unexpected collapse.

The Federal Reserve acted quickly to loosen the limits on bank borrowing. Furthermore, the White House promised to pay any withdrawals for SVB depositors.

The Fed and the FDIC are making great efforts to ring-fence SVB and stop contagion, but this worry is disturbing the market. Investors also believe that the Fed is far less likely to raise interest rates since doing so could bring down any other banks. According to the Fed Rate Monitor Tool, more traders anticipate a 25 basis point increase in interest rates from the Fed this month versus a 50 basis point increase.

Although depositors are likely to withdraw their funds from the bank, there are concerns about contagion. As a result, global markets closed the week in a sharp decline, with the S&P 500 Index closing at its lowest level in more than two months.

US NFP report

The US non-farm payroll statistics released on Friday showed 311k new employment opportunities occurred last month versus the 224k anticipated. Moreover, the unemployment rate grew from 3.4% to 3.6%, while average hourly wages only increased by 0.2%.

Overall, this news would have probably been a bit optimistic for the US Dollar if not for the worry of bank contagion.

The outcome was a sharp decline in the dollar relative to a basket of currencies, with DXY trading at 0.76% and down at 103.78. The current price of the US 10-Year Bond Yield is 3.670%, down by 0.68%.

Looking ahead, traders are looking forward to the release of the US consumer price index on Tuesday.

S&P500 Intraday Technical Levels

Support      Resistance

3879            3988

3839            4057

3770            4097

Pivot Point: 3948

S&P500 – Technical Outlook

The S&P 500 (SPX) has faced resistance near the $4,060 level, which is extended by a 50% Fibonacci retracement mark, causing the index to drop again from a technical perspective. Candles closing below this level are keeping SPX in a sell zone, and the "three black crows" pattern in the 4-hour timeframe adds to the bearish bias among investors.

The SPX's immediate resistance level is $4,095, supported by a 61.8% Fibonacci correction level on the upside. A bullish breakout above the $4,035 level may lead to further gains toward the $4,200 mark. However, in the event of a breakdown below the support level of $3,930, the SPX may drop toward the next support level at $3,880.

Daily Price Outlook

The EUR/USD is trading at 1.0690, up 0.44%in 24 hours. Traders bet that the Federal Reserve will moderate its aggressive stance in the coming days in reaction to an escalating banking crisis in the US, which helped the pair recover upward momentum.

Easing Hawkish Fed bets

The collapse of Silicon Valley Bank serves as a reminder of the US economy's growing gaps caused by a rise in interest rates. The sudden failure and FDIC seizure of SVB Financial Group on Friday triggered a rushed closed-door meeting of the Federal Reserve Board of Governors on Monday.

The Fed took urgent action to ease bank borrowing restrictions. The White House also assured Silicon Valley Bank depositors to cover all withdrawals.

It is worth noting that market worries of no Fed rate rises in March, due to the latest imbalance in the US banking industry, appear to be weighing on the US Dollar. Fed Rate Monitor Tool shows that most traders expect the Fed to raise interest rates by 25 basis points this month, down from 50 basis points.

The outcome was a sharp decline in the dollar relative to a basket of currencies, with DXY trading 0.52% down at 104.03. The current price of the US 10-Year Bond Yield is 3.743%, up 1.29%. The unexpected decline in the dollar boosted the value of the EUR/USD currency pair.

Meanwhile, the US Nonfarm Payrolls (NFP), which came in higher than expected, appears to challenge the risk-on stance in anticipation of this week's events. Traders are looking forward to the release of the US consumer price index on Tuesday. Yet, with the announcement of the US CPI, market reaction may be limited unless there is a huge surprise.

ECB Upcoming Monetary Policy Meeting

The European Central Bank (ECB) will hold its monetary policy meeting on Thursday. The hawks are in charge of monetary policy. While economic activity seems to be building up, the increased inflation readings and the new cyclical high in the core rate have quieted opposition from those who favor a more flexible policy.

The staff will revise its economic predictions during the ECB meeting. The CPI projection for December showed a decline from 8.4% last year to 6.3% this year, 3.4% in 2024, and 2.3% in 2025. As a result, the market is more upbeat.

Furthermore, the ECB is anticipated to announce a rate increase of 0.50% and may help in the current risk-on market to support the EUR/USD price.

EUR/USD Intraday Technical Levels

Support      Resistance

1.0652         1.0708

1.0622         1.0734

1.0596         1.0764

Pivot Point: 1.0678

EUR/USD – Technical Outlook

The EURUSD pair came within a few pips of our predicted positive target at 1.0745 but is currently exhibiting a negative bias due to stochastic negativity.

Yet, we forecast a good momentum to propel the price to continue its bullish trend, with objectives at 1.0800 and 1.0925 after surpassing the previous level.

The EMA50 supports this positive scenario, which will remain valid unless there is a break below 1.0645 and a persistent hold below that level. Today's trading range is predicted to fall between support at 1.0610 and resistance at 1.0780.

Daily Price Outlook

The GBP/USD is trading at 1.2062, up 0.28%in 24 hours.The pair gained momentum, rebounding substantially from recent losses as investors bet that the Federal Reserve will soften its hawkish rhetoric in the coming days in response to a growing banking crisis in the US.

Federal Reserve Board of Governors urgent meeting

The Federal Reserve Board of Governors scheduled an urgent closed-door meeting using expedited protocols on Monday, March 13. The Board reviewed and decided the advance and discount rates that the Fed would impose.

The unexpected collapse and FDIC seizure of Silicon Valley Bank (SVB) Financial Group on Friday may have caused this hurried Fed meeting. The Fed used emergency steps to make borrowing easier for troubled banks. The White House also informed Silicon Valley Bank depositors that it would cover all withdrawals. Jerome Powell and his allies rushed in to help with a new tool to save the billionaire tech depositors at SVB and Signature Bank against hawkish threats of a 50bps rise.

Moreover, in March, the odds of a 50bps rise fell from 75% to less than 20%, and in May, the probability of a 25bps hike fell from a coin flip to only 85%. As a result, the dollar dropped significantly versus a basket of currencies, with DXY trading 0.23% down at 104.33. US 10-Year Bond Yield is now trading at 3.737, up 1.14%.

The unexpected fall in the dollar helped the GBP/USD currency pair to gain value.

UK and US Economic Conditions

British economic growth in January exceeded expectations, relieving concerns about a possible recession. Britain's GDP grew 0.3% month over month, following a 0.5% decline in December. According to a Reuters survey of economists, growth would be 0.1%.

In the United States, Nonfarm Payrolls revealed significant job growth last week, despite the rise in the Unemployment Rate and signs of cooling wage inflation, leading investors to lower expectations that the Federal Reserve will hike interest rates as sharply as expected.

Going ahead, traders are awaiting the US consumer price index and UK labor market data on Tuesday. BoE will especially appreciate slower wage growth following last month's positive surprise. However, with US CPI released, market reaction may be limited unless there is a significant surprise.

GBP/USD Intraday Technical Levels

Support      Resistance

1.2044         1.2108

1.2010         1.2138

1.1980         1.2171

Pivot Point: 1.2074

GBP/USD – Technical Outlook

The GBPUSD pair is currently exhibiting a bullish bias and hovering around the 1.2100 level. For the bullish trend to continue as anticipated, a positive catalyst is needed to push the price towards its next target at 1.2260.

To achieve the expected targets, we recommend maintaining a bullish trend that relies on price stability above 1.2050. Breaking below this level will result in a price decline towards 1.1940 before any new positive attempts. Today's anticipated trading range is expected to fall between support at 1.2040 and resistance at 1.2200.

Daily Price Outlook

The Nasdaq 100 (NDX) is trading at 11,995.88, experiencing a 1.80% decline in the last 24 hours. This drop comes after investors closely watched the weekly unemployment statistics before releasing crucial job reports, causing a decline in US stocks.

Fed rate hikes and Biden’s Buyback Tax Plan

The weekly report on Initial Jobless Claims revealed 211,000 individuals applied for jobless benefits in a week, higher than the expected average of 195,000. This indicates that rising interest rates are causing pressure on the employment market. As a result, traders are now pricing in a higher likelihood of a 50 bps lift-off at the upcoming FOMC meeting on March 21-22.

Ahead of the release of the much-awaited February jobs report (NFP report) from the United States, traders have migrated to the sidelines, causing the yield on the US 10-Year Treasury to drop to 3.847%. Meanwhile, the US Dollar Index (DXY) is now hovering around 105.20.

Furthermore, traders are concerned about President Biden's proposal to quadruple a 1% stock buyback tax and recession fears. Buybacks are a crucial tool for giving investors their money back. If this policy is adopted, it could act as a long-term adverse trigger for stocks.

NASDAQ 100 Top gainers and losers

The best-performing shares in the Nasdaq 100 index during Friday's opening trade were those of Intel Holdings, with a 1.77% increase. On the other hand, Walgreens Boots Alliance had the worst performance, down 3.45%.

Looking at the year-to-date results, Walgreens Boots Alliance is down approximately 24.56%. Two other stocks on the move are Warner Bros. Discovery, down 3.7%, and PayPal, up 0.12%.

NASDAQ Intraday Technical Levels

Support      Resistance

12133          12267

12051          12319

11999          12401

Pivot Points:12185

NASDAQ – Technical Outlook

Technically, the NASDAQ is currently in a bearish trend, having broken through the support area of $12,100 and is now headed towards the next support level of $11,900.

Further down, the immediate support for NASDAQ is at $11,850, and a break below this level could expose the index to the next support area of $11,600.

The MACD and RSI indicators are both in the selling zone, indicating a strong bearish bias in the market. However, on the upside, if the NASDAQ manages to cross over the $12,100 level, it could potentially reach the $12,400 or $12,600 mark.

Daily Price Outlook

The GBP/USD pair traded around 1.1916 on early Friday as bulls paused after the largest daily gain in over a week. Significant data releases are expected from both the UK and the US.

Upcoming US Economic Data

Federal Reserve Chairman Jerome Powell has emphasized the need for more interest rate hikes to control inflation, citing stronger-than-expected economic figures showing continuing inflationary pressures.

However, rising jobless claims have lessened the tightness of the labor market, despite positive ADP data on Wednesday and more job openings than anticipated. Thursday's data showed weekly jobless claims were 211K more than the projected 195K.

Despite these US statistics, the US Dollar's rise has been halted by a risk-off sentiment. The US Dollar Index (DXY) is edging downwards at 105.28 before the release of major US statistics such as average hourly earnings, nonfarm employment change, and unemployment rate. Additionally, US 10-year Treasury bond rates are falling to 3.874 ahead of the jobs report.

Traders are anticipating the US Nonfarm Payrolls data, which could lessen the Federal Reserve's requirement to tighten conditions more quickly if the data is downbeat and shows rising jobless claims.

UK GDP Report and GBP/USD Exchange Rate Outlook

Market participants are waiting for the UK's GDP report release. While the market is anticipating a 0.1% increase in January's GDP, which is a significant improvement over December's 0.5% fall, the possibility of a recession in the first half of the year remains a topic of debate.

The Bank of England's ability to control inflation, which has remained high at 10.1% even after lifting the cash rate to 4.00%, will be crucial in determining how much the economy will shift.

However, Bank of England (BoE) policymaker Swati Dhingra cautioned against interest rate hikes on Wednesday, stating that over-tightening poses a more significant concern. Since the BoE appears less hawkish than the Fed, an expected relaxation in UK macroeconomic data today may allow GBP/USD bears to resurface.

GBP/USD Intraday Technical Levels

Support      Resistance

1.1858         1.1967

1.1790         1.2008

1.1749         1.2076

Pivot Point: 1.1899

GBP/USD – Technical Outlook

The GBPUSD pair tested the resistance level of 1.1940, remaining stable below it as the EMA50 added more strength to the resistance. The pair will likely continue its downward correctional wave with a target of 1.1625.

The Stochastic indicators show clear negative signals, suggesting a potential decline in upcoming sessions, as the pair trades within a bearish channel depicted on the chart.

Therefore, our bearish outlook remains valid and active. It is important to note that if the pair breaches the 1.1940 and 1.2020 levels, the expected decline may be halted, and the price could begin to recover.

Daily Price Outlook

The USD/JPY currency pair is trading at 136.50, up 0.26% in the last 24 hours. The Bank of Japan's dovish stance and concerns over rising US interest rates have declined the Japanese yen.

US Initial Jobless Claims Increase, Driving Down Dollar Value

The US Initial Jobless Claims for the week ended on March 4th showed a significant increase to 211K, the highest since January, compared to the expected 195K and the previous 190K. The markets remain apprehensive due to mixed US data and growing concerns about inflation.

The higher-than-expected unemployment claims have caused a decrease in the dollar's value, with the DXY trading lower at 105.20.

Currently, investors are waiting for positive changes in the nonfarm job market, average hourly wage, and unemployment rate, as these factors are expected to boost the value of the US dollar.

The Bank of Japan's Dovish Stance

Last week, Kazuo Ueda, the upcoming Bank of Japan (BoJ) Governor, declared that he would continue with the accommodative monetary policies implemented by his predecessor, Haruhiko Kuroda. Ueda stated that the Japanese economy has not yet fully recovered and requires sustained support.

Recently released data shows that the Japanese economy avoided a recession in the fourth quarter of 2022. The report indicates that the GDP remained unchanged in Q4 2022, falling short of economists' predictions of 0.2% growth.

According to reports, Kazuo Ueda, the next Governor of the Bank of Japan (BoJ), is expected to maintain the bank's ultra-dovish position in the short term during today's policy meeting. However, experts predict a shift in the bank's stance later this year.

The BoJ decided to keep interest rates at record lows on Friday, stating that it would maintain its current pace of yield curve control (YCC) as it deals with a severe slowdown in the Japanese economy and pursues a leadership change. The central bank retained its short-term and long-term policy interest rates at -0.1% and 0%, respectively.

The bank also stated that it would keep the volatility in 10-year bond rates at 0.5% to negative 0.5% and maintain the pace of quantitative easing at its present level, with no surprises before a change in its top executives.

As a result of the Bank of Japan's dovish outlook, the Japanese yen dropped sharply, losing ground against the US dollar and boosting the momentum of the USD/JPY currency pair.

USD/JPY Intraday Technical Levels

Support      Resistance

135.60         137.03

135.06         137.92

134.17         138.46

Pivot Points:136.49

USD/JPY  – Technical Outlook

The USD/JPY pair tested the bullish channel's support line yesterday, causing downward pressure. However, today the pair is trading above the line, indicating a higher possibility for a bullish trend to resume shortly, with the initial objective being the 137.70 level.

Although stochastic signals are currently positive, the price is supported by the EMA50 from below, further increasing the likelihood of a projected bullish trend.

If the price breaks below 136.30, it could result in downward pressure and end the predicted advance. The trading range for today is expected to be between 135.90 - 137.50.

Daily Price Outlook

The S&P500  is trading at 3,992.01, up 0.14% in the last 24 hours. The index gained ground as investors struggled to make sense of mixed statements made by Federal Reserve Chair Jerome Powell and US economic data ahead of upcoming labor and inflation reports.

The upcoming data is anticipated to influence the central bank's rate hike plan.

US Economy and Fed Rate Hikes

On his second day of testimony before Congress on Wednesday, Powell reiterated his message of potentially higher and quicker interest rate increases, which he had already stated on Tuesday. However, he hinted that the decision on the next rate hike would depend on the data released prior to the Fed's March meeting.

In addition, data released on Wednesday showed that US private payrolls rose more than expected in February, but this did little to ease concerns about the potential for higher interest rates.

Another report indicated that US JOLTS Job Openings decreased in January, but less than anticipated. Despite the decrease, the data suggested that the labor market remained tight, with job openings falling to 10.82 million. This has raised concerns that the Fed may continue its plan to raise interest rates for an extended period.

Traders continued to increase their bets on a 50 basis point interest rate hike by the US central bank later this month. CME Group's FedWatch tool indicated a nearly 80% chance of such a rise, up from roughly 70% on Tuesday.

The dollar remained stable for the day but fell from its three-month highs as Federal Reserve Chairman Jerome Powell provided no new insights during his second day of congressional testimony. The DXY dropped to 105.57 as investors awaited Friday's employment data. Meanwhile, the US 10-Year Treasury Yield increased to 3.997%.

S&P Sectors

Six out of the 11 major sectors of the S&P were down, with energy showing the largest decline at 1.3%. On the other hand, real estate saw the highest increase, rising by 0.96%.

Despite a general market downturn, airline stocks survived after the Justice Department filed a lawsuit to halt JetBlue's acquisition of Spirit Airlines. United Airlines saw a 3% increase, while American and Delta had gains of 1.5% and 1.6%, respectively.

Occidental Petroleum Corp. saw a 1.8% increase after Warren Buffett's Berkshire Hathaway Inc. raised its ownership to approximately 22.2% in the oil company.

However, Tesla Inc. fell by 3.3% after the U.S. auto safety agency announced a preliminary inquiry on 120,000 Model Y 2023 vehicles due to reports of steering wheels coming off while driving.

S&P500 Intraday Technical Levels

Support      Resistance

3961            4031

3936            4075

3891            4101

Pivot Point: 4006

S&P500 – Technical Outlook

The S&P 500 (SPX) has faced resistance near the $4,060 level, which is extended by a 50% Fibonacci retracement mark, causing the index to drop again from a technical perspective. Candles closing below this level are keeping SPX in a sell zone, and the "three black crows" pattern in the 4-hour timeframe adds to the bearish bias among investors.

The SPX's immediate resistance level is $4,095, supported by a 61.8% Fibonacci correction level on the upside. A bullish breakout above the $4,035 level may lead to further gains toward the $4,200 mark. However, in the event of a breakdown below the support level of $3,930, the SPX may drop toward the next support level at $3,880.

Daily Price Outlook

The price of gold, XAU/USD, is currently trading at $1,814.99 and remaining stable as traders await the release of United States jobs data. On Wednesday, Federal Reserve Chair Powell addressed the House Financial Services Committee and emphasized the Fed's reliance on data. Powell also stated that the

Repetitive Remarks of Federal Reserve Chairman

Fed had underestimated the resilience of GDP and inflation, supporting the central bank's hawkish stance. As a result, market participants anticipate a 50 basis point rate increase in March, compared to the 0.25% forecasted last week.

Following the hawkish comments made by Fed Chair Powell, the US dollar gained strength against other major currencies and is currently trading at 105.58. Additionally, the yield on the 10-year bond rose to 3.991%.

The price of gold bounced back from a low of one week but didn't show much activity as Powell repeated his hawkish stance in front of the House Financial Service Committee.

US Economy and Gold: How Economic Data Impacts the Price of Gold

Positive economic data from the US has resulted in downward pressure on the XAU/USD market, despite repeated remarks from Fed Chair Powell offering relief to gold traders.

On Wednesday, the US ADP Employment Change rose to 242K in February, exceeding expectations of 200K and the revised figure of 119K for the previous period.

Additionally, the US JOLTS Job Openings for January increased to 10.824M, surpassing the expected 10.6M but lower than the previous 11.234M.

However, the lack of a significant surprise for the market and the cautious sentiments ahead of Friday's important United States jobs data contributes to the most recent inactivity of Gold.

US to Lift COVID-19 Travel Restrictions for Chinese Travelers

On Wednesday, China called for the normalization of cross-border travel, as the US is reportedly looking to ease COVID-19 testing restrictions for Chinese tourists. Additionally, the US has adopted a relaxed schedule and lifted testing requirements for tourists from China in a bid to boost trade.

Looking forward, the Producer Price Index (PPI) for February and the monthly Consumer Price Index (CPI) for China is expected to impact gold prices.

Gold (XAU/USD) Intraday Technical Levels

Support      Resistance

1809            1823

1802            1831

1794            1838

Pivot Point: 1816

Gold (XAU/USD) – Technical Outlook

After briefly showing bullish movement around the $1828.70 level, gold prices have since reversed and continued their downward trend, currently within the depicted bearish channel on the chart, with a target of $1788.20. Due to the prior level break, the EMA50's negative pressure on the price supports the continuation of this anticipated decline.

However, a potential stop to the bearish scenario and a likely attempt at recovery with an initial target of $1878.80 could occur if the price breaks above $1828.70 and $1843.70. The expected trading range for the day is between the support level of $1790.00 and the resistance level of $1825.00.

Daily Price Outlook

The EUR/USD is currently trading at 1.0547, attempting to extend the recovery from a two-month low achieved on the previous day. However, mixed data from the US and the Eurozone, combined with the cautious sentiment surrounding Friday's employment report, have limited the recent movements of the Euro currency pair.

ECB Rate Hikes Expectations

On Wednesday, the focus was on the European economy, with several reports being closely watched. In January, German retail sales saw a decline to -6.9% YoY from -6.4% in December, but industrial production growth surged to 3.5% from the predicted 1.4% and -2.4% in December, indicating a robust recovery.

On the other hand, Eurozone's Q4 Employment Change dropped to 0.3% QoQ, falling below market predictions of 0.4% and previous readings. Additionally, the seasonally adjusted GDP eased to 1.8% YoY in the same period, compared to market predictions of 1.9%.

Following these statistics, ECB Governing Council member Ignazio Visco emphasized the importance of prudent monetary policy and stated that data should be used to influence monetary policy.

Despite his hawkish stance and support for gradual rate rises, Christine Lagarde, the president of the European Central Bank, has already announced an increase in rates by 50 basis points at the March monetary policy meeting, citing concerns about high inflation.

With rising concerns about inflation in the Eurozone, investors are anticipating further rate hikes from the ECB, resulting in significant bids for the Euro.

Jerome Powell Testimony

On the other hand, the US Goods and Services Trade Balance decreased to -$68.3B, compared to analysts' estimates of -$68.9B and the prior reading of -$ 67.2 B. The US JOLTS Job Openings for January increased to 10.824 million, exceeding the anticipated 10.6 million but down from the previously revised 11.234 million.

The US dollar remained steady throughout the day, although it has fallen from its three-month high, as Federal Reserve Chairman Jerome Powell did not provide any new information during his second day of testimony before Congress. As of now, the US Dollar Index (DXY) is trading at 105.61.

BlackRock, the largest asset manager in the world, predicts that the US federal funds rate will reach its peak at 6%, following a warning from Fed Chairman Jerome Powell that interest rates are likely to rise more than initially anticipated by the central bank.

Federal Reserve Chair Jerome Powell reiterated his hawkish stance during his testimony in front of the House Financial Services Committee. Powell indicated that the central bank had misjudged the strength of GDP and inflation, emphasizing the importance of data in the Fed's decision-making process.

EUR/USD traders are eagerly anticipating Friday's US jobs data, which may provide further clarity on the direction of the pair.

EUR/USD Intraday Technical Levels

Support      Resistance

1.0524         1.0573

1.0500         1.0598

1.0475         1.0622

Pivot Point: 1.0549

EUR/USD – Technical Outlook

The EUR/USD pair tested the exponential moving average (EMA) 50 in mildly bearish trading yesterday. However, stochastic is now gaining positive momentum, indicating a potential resumption of the main bullish trend with a next target of 1.1030.

We maintain a positive outlook for the near future, but it should be noted that a break below 1.0845 could lead to a test of the 1.0745 zones before attempting to rise again.

Today's trading may vary between the support level of 1.0800 and the resistance level of 1.0970.

Daily Price Outlook

The GBP/USD currency pair has failed to stop its previous declines and is still flashing red around the $1.1810 mark amidst ongoing Brexit uncertainties and chatter from the Federal Reserve regarding future monetary policy.

At present, the GBP/USD currency pair is trading within a relatively tight range of 1.1810 to 1.1842, with the current price at 1.1831, indicating a lack of decisive market movements. Ongoing Brexit uncertainties and mixed signals from the US Federal Reserve may be contributing to this trend.

Brexit has been a major driver of the GBP/USD pair's poor performance, as investors remain concerned about the UK's future relationship with the European Union. The lack of progress on these issues has resulted in GBP losses and affected the pair's overall performance.

Additionally, the Bank of England's monetary policy stance has played a role in the GBP/USD pair's performance. The central bank has been under pressure to support the UK economy during the COVID-19 pandemic and has implemented a range of monetary policy tools, such as interest rate cuts and asset purchases.

Feds Hawkish Stance & Bullish US Dollar

Recently, the US Federal Reserve has taken a hawkish tone, suggesting that interest rates may be raised sooner than originally anticipated. This has led to a stronger US dollar, as traders anticipate tighter monetary policy in the future, reinforced by positive economic indicators such as lower unemployment and increasing inflation.

The bullish US dollar has an impact on other currencies, including the GBP/USD pair, as traders adjust their strategies in response to changing market conditions. This hawkish approach and strong US currency suggest the possibility of a shift in the global economic environment in the coming months.

On Wednesday, the US dollar strengthened against a basket of currencies, reaching its highest level in three months. The dollar index and dollar index futures both rose by 0.2%, hitting their best levels since early December. The reasons for the dollar's rise are not entirely clear, but it may be due to global economic uncertainty and market volatility, as well as the Federal Reserve's hawkish tone and the strength of the US economy.

GBP/USD Price Chart - Source: Tradingview

GBP/USD Intraday Technical Levels

Support      Resistance

1.1997         1.2052

1.1967         1.2079

1.1941         1.2108

Pivot Point: 1.2023

GBP/USD – Technical Outlook

The GBPUSD pair has strongly broken the 1.1940 level and is currently hovering around the 1.1800 level, indicating a return to the bearish correctional track. Further expected declines are likely on an intraday and short-term basis, with our next target at 1.1625.

As such, we anticipate continued bearish trend dominance in the upcoming trading sessions, bolstered by the negative pressure from the EMA50. However, there may be some temporary sideways fluctuation due to the current positivity of stochastic before the expected decline resumes.

It should be noted that breaking through the 1.1940 level would halt the current negative pressure and initiate new recovery attempts. Today's projected trading range is between 1.1720 support and 1.1890 resistance.