GBP/USD analysis: no signs of a bottom just yet

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3295

Lesser chances of a UK rate hike in the second half of 2018 hurt the Pound.
Disorderly Brexit could even result in a rate cut, Carney says.

The GBP/USD pair closed the week at a fresh 2018 low of 1.3295, hit on Friday by the second estimate of UK GDP for the first quarter of the year, which came in unchanged at 0.1%, further denting chances of a rate hike in the second half of this year. Total business investment for the same period, suffered a downward revision to -0.2% from the first estimate of 0.3%, indicating that things won't be getting better in the foreseeable future. Dovish comments from BOE's Governor Carney, added to Pound's weakness, as he said that the central bank could cut interest rates again in the event of a ‘disorderly’ Brexit. The UK will kick start the week with a bank holiday, and the local macroeconomic calendar has little to offer until Friday, with the release of May preliminary Markit manufacturing PMI, expected at 53.6 from the previous 53.9. The daily chart for the pair shows that, after a period of consolidation at the beginning of the month, it resumed its bearish trend that has not yet found a bottom, as technical indicators accelerated their slides, with the Momentum easing modestly, but at fresh 2-week lows, and the RSI heading south around 21. Shorter term, and according to the 4 hours chart, the pair is also biased lower, with a bearish 20 SMA providing a dynamic resistance at 1.3365 and technical indicators leaned lower, the Momentum without directional strength but the RSI accelerating lower and supporting further slides ahead.

Support levels: 1.3280 1.3245 1.3210

Resistance levels: 1.3320 1.3365 1.3400

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.