Focus on GBPUSD today – 5th March 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GBPUSD for 5^th March 2024. 

Key Takeaways 

• U.S. dollar weakened: The US dollar experienced some weakness after recent economic data shows diminishing momentum, flaring expectations for possible early rate cuts from the Federal Reserve. The highlight of this week will be the Nonfarm Payrolls report, which may prompt significant volatility on the greenback.  
• Tax cuts in UK: British Finance Minister will announce the country’s latest budget on Wednesday, with expectation upon possible tax cuts. Pound sterling’s mid-term trend will depend on the announcement, whereby a minor tax cut will eventually boost the demand for the currency.  

Technical Analysis 

Daily Chart Insights 

• Stochastic oscillator: Both signal lines crossed, giving the current bulls an upperhand for the short term. Nonetheless, it is important to monitor this agenda as it is currently hovering at the overbought threshold which may trigger a change in trend direction.  
• The upper resistance area: The area at the nearest resistance level (consisting of upward and downward trendlines, respectively) provides significant selling pressure which may be detrimental to its upside. Nonetheless, a successful break above may provide bullish momentum in the short term. Otherwise, the pair may enter consolidation.  
• Support price below: The pair is also subjected to strong support below it, near the 33 and 65-MA line. Nonetheless, if the pair breached through 1.2653, it may provide bears an upperhand to push the pair further down. 

1-hour Chart Analysis 

• Stochastic Oscillator: The indicator formed bearish signal after retracing from the overbought region, implying further downside ahead during Asian trading session. However, it is worth noting to pay attention to the pair’s price action when the indicator approached midline.  
• Fibonacci retracement level: Following a strong retracement last week, the pair may extend its downside further, along the retracement levels of 23.6% or 38.2%.  

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.2670, 
• Bullish Scenario: Bullish sentiment prevails above 1.2670, first target 1.2723, second target 1.2739; 
• Bearish Outlook: In a bearish scenario below 1.2670, first target 1.2644, second target 1.2628. 

Conclusion 

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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.